January 26, 2017

The mobile technology is part of all the business fields and it makes the process easier than any other service. The recent news about the mobile technology is that there are mobile apps are also planning to enter into the loan brokering business for the banks and NBFCs, they even offer credit advice; while there are some mobile apps are planning offer loans all by themselves.

The mobile apps like EarlySalary, CASHe, InstaPaisa and GoPaySense are competing with the advisory services and online credit marketplace like PaizaBazzar.com, CreditMantri, RupeePower and BankBazzar in offering the loan. A report states that more than fifty-two percent of the financial transaction in India is made through the mobile devices and the web-based method has become outdated. And the other important factor of the mobile service is that it promises the users with an efficient, speed and convenient service and it attracts more users to opt for the mobile service rather than the web-based service.

The lead generators

When a person applies for the online payday loan, they will meet with the direct lender and they lend the money, but a loan aggregator acts as a middleman. The loan aggregators are companies that collect the financial and personal information of a person based on the loan application and shop it among the lenders who might offer the best loan option for the user.

The loan aggregators sell all the information of the applicant including the name, date of birth, and contact number. Apart from this information, the financial information stated on the loan application like the annual income, credit card account number, social security number, and bank account number of the applicant is also sold by the loan aggregator.

In the United States, the payday lending concept has a wide user base and the mobile applications charge from fourteen percent to twenty-three percent for the loan applications, this rate is cheaper than the credit cards.

The lending space is occupied by the mobile apps

There are a few mobile apps participating in the lending space that offers the users with hassle-free loans. The loan process using the mobile application is very simple and faster access that requires less documentation and the data about the consumers can be collected from the data analytics tools, social media, location and mobile content. With all these information, the mobile app gives the eligibility loan amount a consumer can get from the lender.

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The mobile lending space consists of three types of players, the lenders who directly give the loan to the consumers, next one are the peer to peer lenders and finally the direct marketing agents.

Direct loan providers: The companies that book the loan themselves should receive a license from the Reserve Bank of India. The companies must receive a status called a Fintech company from the RBI to operate as a nonbank player in the lending space.

Peer to peer lending: This is a practice of lending money to a business or an individual directly with the borrowers via an online service that matches the consumer with the applicable lender.

Direct marketing agents: They are the intermediaries for the bank; they provide the physical marketing information to the consumers and do not involve any other mode of advertisements.

Mobile apps- the new mode of loan providers

EarlySalary

This is a lending space in India that provides an innovative style of offering the loan. The platform helps the customers to get the loan within few minutes using the mobile technology and the new scoring feature is used for customer profiling. The EarlySalary provide the consumers with small bridge loans so that they can manage their emergency situation and the process involved in receiving the loan is simple.

To borrow the money, the user must apply for the loan by registering in the platform. To make it easy for the customers, the platform allows the consumers to log in using their Facebook account and provide certain details like the cash they need when they will be able to return and they have to upload some of the documentations.

Based on the details provided by them, the social score and the basic information the consumer is calculated and the EarlySalary will analyze how much they can loan amount they can offer the consumers. Once when the amount is approved, the official from the team will get the signature of the consumer and amount will be credited to the consumer’s bank account.

InstaPaisa

This is a credit decision platform that connects the lenders and the borrowers to execute an instant transaction. By using the new age data proxy credit score and the proprietary technology, the borrowers are matched with the best lenders for their profile and the transaction is completed.

The consumers can receive easy and quick EMI loans without visiting the banks for several times and processing much documentation. By using this platform, the consumers can instantly receive the loan amount without wasting even a single minute.

The lenders in this platform are offered with pre-defined segments based on the loan amounts. The lenders must simply describe their details to the consumers they wish to lend money, the purpose of lending and the interest rates. Once when the lenders complete their profile, they will be matched with the borrowers.

The platform partners with the offline and online marketplace to leverage the information for the consumers. This InstaPaisa readily connects with the consumers to purchases and helps to get their business with more revenue, profit, conservation and transaction.

GoPaySense

This platform enables the users to manage the financial collections with simple, fast and easy methods. The consumers can receive money in their bank account within a few days. This mobile application has a calculator that is used to calculate the monthly EMI of the person and offer flexible amounts.

The consumers are qualified for an EMI depending on the professional network and social network of the consumer. To access the platform, the user must register with the app and find out the amount they are qualified with, using the calculator.

The consumers receive a credit application that requires certain information about the consumer. Based on the credentials and the social score, the consumer receives money on their bank account for their needs.

GoPaySense promises their consumers with a simple and easy process because they value their consumer’s time. The team is approachable so that the consumers can ask any kind of queries to the respective officials without any haste.

The platform offers the consumers with flexibility for requesting the EMI amount because the consumers might have their own reasons to get credit amounts. The consumers are offered with fast disbursement to the consumers so that the consumers will receive money as soon as they complete their documentation process.

CASHe

This is mobile application platform that offers the users with emergency financial support and offers personal loans. This timely EMI payment mode helps the users to fulfill their emergency requirements without spending more time walking the bank or financial institutions.

The platform provides the users with short-term personal loans, especially to the young and salaried professionals. The application follows a simple algorithm called the SLQ (social loan quotient) that creates a sophisticated credit profile of the consumers and is different from the way how the credit agencies or conventional banks do business. By completing the registration process, the consumer will receive money on their account within a few minutes.