© BALDOR TECHNOLOGIES PRIVATE LIMITED,2018.ALL RIGHTS RESERVED     
SALES
SUPPORT
1800 123 4339
ADDRESS
4-F, Rushabh Chambers, Plot No.609,
Off Makwana Road, Marol Naka,
Andheri (East), Mumbai - 400059 - India 

Towards a world

without fraud.

Search
  • IDfy Press Office

Payday Loans Businesses can be Profitable: Wriju Ray to ET Prime

In this ET Prime in-depth report on Chinese Fintechs setting up shop in India, Wriju Ray, co-founder and CBO at IDfy, explains the unit economics of this business showing how a monthly disbursement of INR 20 Crore payday loans can be profitable.


"It is very difficult to give an INR 10 Lakh loan to a SME or a personal loan, but it is very easy to give a Rs 1000-5000 loan for 15 days and analyze the behavior of the borrower and predict the underwrite better," says Wriju.


He explains that nobody sends an agent to recover such a small amount. The lenders, therefore, factor in a 10-15% default rate. But even if 85% of the borrowers return the money, one can double the loan ticket. Given that the cash moves fast, there isn't a cash flow problem either.


The article shows how Chinese Fintechs are setting up businesses in India using the Singapore route. It highlights challenges they are facing while doing business in India. It also highlights how they are likely to attract regulators' scrutiny.

IDfy delivers Straight-Pass-Through KYC solutions for leading FinTechs


For business enquiries, write to shivani@idfy.com

For press enquiries, write to anupam.m@idfy.com

53 views
Menu logo_all.png