Bangalore: Finzy, one of India’s top peer-to-peer (P2P) lending platform has successfully completed one year of its operations with zero customer defaults in its EMI repayments. The company doubled its loan disbursements in six months after setting up its operations in June last year, due to a surge in demand for loans. Finzy has been able to provide its lenders with an average of 15.5% interest per annum on their investments. This has led to a strong interest from existing lenders and a significant 42% of the lenders have re-invested in the platform which shows a trend of the growing confidence in the new asset class.
The company’s positioning in the market, ways of sourcing the customers and the screening process undertaken by the platform are significant factors that helped Finzy to ensure that there are no defaults in the EMIs.
Amit More, Founder & CEO, Finzy said, “With regard to returns, we ensure that we do not over promise, higher returns come with higher risks, so we ensure we bring in the right kind of borrowers on our platform. Our proprietary credit algorithm plays an important role in screening borrowers. The algorithm checks for around 130 parameters while screening the borrowers and only once they pass these quality checks do we list the loans on the platform. Our best in class credit underwriting standards are reflected in more than 81% rejection rate of loan applications on the platform.”
Of the borrowers, 80% belong to the salaried class while the rest are self-employed. The average investment size of each lender portfolio in Finzy has increased by 77% from September 2017 to May 2018.
“An investor’s investment goes to an average of nine borrower loans which helps diversify and optimize risk for the lenders. We have a free registration process, low interest rates, quick turnaround times, stringent screening and automated EMI collections which are significant factors that are responsible for our successful operation in the last one year. We hope to continue serving our customers with the same passion and zeal,”said Vishwas Dixit, Co-Founder & CMO, Finzy.
In April 2018, Finzy had raised USD 1.3 million in first round of Pre Series A from investors in the industry. The company has applied for an NBFC P2P license in November 2017 and is expecting the certificate of registration from RBI soon.