Paisabazaar sees month-on-month increase in personal loan disbursal

By: |
July 07, 2021 2:00 AM

The lending marketplace, a part of PB Fintech which also owns the country’s leading insurtech brand Policybazaar.com, has been witnessing an increase in demands for loans during the last three months.

Paisabazaar has over 70 partnerships with banks, NBFCs, credit bureaus and fintech lenders and offers products across lending categories.Paisabazaar has over 70 partnerships with banks, NBFCs, credit bureaus and fintech lenders and offers products across lending categories.

Paisabazaar.com, India’s largest lending marketplace, is witnessing a month-on-month increase in disbursal of personal loans with a rise in demand and supply as lockdown restrictions are being relaxed across the country.

The lending marketplace, a part of PB Fintech which also owns the country’s leading insurtech brand Policybazaar.com, has been witnessing an increase in demands for loans during the last three months.

“The situation, of course, is not nearly as bad as what we witnessed last year. The first wave was sudden and unanticipated, which led to an abrupt halt to the supply of credit. There was also profound uncertainty amid the economic disruptions and the health crisis that led to a much more severe impact last year, with most lenders focussing primarily on collections,” said Naveen Kukreja, CEO and co-founder, Paisabazaar.com.

“The second wave did have some impact, but the industry expected it to be short-lived. The overall sentiment within the sector was also more positive this time around,” Kukreja told FE.

Paisabazaar has over 70 partnerships with banks, NBFCs, credit bureaus and fintech lenders and offers products across lending categories.

“What has significantly changed in the last 12 months is that most of the large banks and NBFCs were better equipped to handle situations of lockdowns and restrictions on physical movements. We all had the learnings from last year, and a lot of work happened within the industry in the previous few months. Almost all lenders have significantly amped up their focus on digitisation. Today, personal loans from many lenders have an end-to-end digital process, where there is no need for you to physically visit a bank branch or meet bank officials,” Kukreja said.

Since the pandemic started, most lenders have raised their eligibility criteria around credit bureau cut-off and minimum income. “We see much more stringent checks and verifications on borrowers’ employment to ensure income stability and adequate repayment capacity,” he said.

People usually seek personal loan to raise funds for home renovation, higher education, family celebrations, travelling and healthcare expenses. “As unlock started happening across the country, consumers have also started planning their annual vacations and celebrations that got stalled during the lockdown. We have been witnessing an increase in demand for loans in the last three months. This is expected to increase further in the next six-nine months,” said Gaurav Aggarwal, senior director, Paisabazaar.com.

Kukreja said over the last 12 months, the company has sharpened its focus on strengthening its business fundamentals. He said a key aspect was to build a more robust digital infrastructure and capabilities, and the company has been working hard with its partners to digitise lending.

“A key growth driver for us will be our neo-lending strategy, where we would co-create innovative and meaningful products with our partners to address the unmet credit needs of underserved segments. We firmly believe true growth for India’s lending market would come from the credit-starved segments like sub-prime, SMEs and new to credit,” Kukreja said.

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