Rubique, an online marketplace for financial products, has seen a huge spike in approval and disbursement of loans post-demonetisation. The fintech company has approved R200 crore worth of loan proposals and disbursed R180 crore on its marketplace after November 8, which is about 20% of its cumulative disbursals since its inception two years ago.
The company, which was founded in October 2014, has so far processed more than R975 crore worth of loan proposals. It has also issued 26,000 credit cards through 65 financial institutions generating a revenue of R17.5 crore.
“The demonetisation of high value Indian currency has lead to a decrease in the primary purchase of the assets and hence the loans attached to them have seen some down trends, but this seems to be a temporary phenomena which is a transitional phase from a cash economy to digital economy,” Manavjeet Singh, founder and CEO, Rubique told FE.
During the first three quarters of current financial year, Rubique has processed R571 crore worth of loans compared to R343 crore worth of loans in 2015-16, a growth of 66%. While, the disbursals have grown 196% to R698 crore as compared to R236 crore in the previous year. Post-demonetisation, the company has processed 4,900 applications for loans.
Singh said demonetisation has increased the lending capacity of the banks (due to sudden surge of deposits). “We will witness decrease in the interest rates and therefore home loan category would see an upward trend. There is an upward trend in credit card applications too,” he said.
Through various technology interventions such as the proprietary matchmaking algorithm, e-KYC, direct integration with financial institutions’ system, Rubique has been able to make traditional loan process more simple, predictable and efficient for customers as well as financial
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Registering a 10% month-on-month growth, Rubique’s completely tech-enabled process has reduced the loan processing time almost by half compared to the turnaround time in traditional approach. It has facilitated SMEs massively by processing quick loans as and when small businesses need capital, Singh added.
“Our current run-rate is on the brink of R100 crore a month, with revenues of almost R1.5 crore a month. While tier 1 cities are our primary business contributors, we are also generating a good response from other cities,” Singh said.