HappyLoan – to facilitate dreams come true

Partner for Indian MSME industry – ArthImpact
#happyloan #digitalloans #paperlesss loans #arthimpact
Financial services in India is witnessing a significant growth in the area of investments and lending. The avenues and the methods are increasingly getting easy and affordable with digital disruptions. Start-up ecosystem of India is contributing significantly to this revolution. One of such revolution I would like to talk here about is digital lending to the unserved population of India.

‘Digital lending’ concept initially began with lead generation, now is evolved to complete end to end paperless solution. One of the pioneer of this segment is “Happy Loans”, launched to address the needs of small businesses, they lend from Rs. 2000 to 1 lakh with flexible tenure and an attractive rate of 2% per month which is almost at par with the personal loans provided by Banks and much better than informal lending. “Happy Loans”, a micro-lending initiative of #ArthImpact, a self-funded start-up by Mr. Manish Khera and Gautam Ivatuary. HappyLoan mostly served the un-served and underserved Indians. They have taken up alternate channels and method to determine the repayment capacity of individuals. “Happy loans” is a microfinance initiative with presence in 100 cities in India, also helps borrowers building a credit history by disciplined repayment approach.

Manish Khera is known to be a serial entrepreneur, and one of the early movers in financial inclusion and digital banking. Manish Khera’s two decades of corporate journey began at ICICI Bank, where he played a crucial role in setting up the institution’s Alternate Channels Group, after which he moved on to found FINO Paytech in the year 2006, which has served over 70 million customer. He then joined Airtel Payments Bank as CEO. Through his journey of banking, he realized the demand gap for lending to customers with formal credit history and steady income source is huge. The acquisition cost of Banks is too high to address the small borrowers. So, to address the need of these 600 mn people who do not have access to mainstream credit facility in India, he launched Arth Impact. The organization is bound by its vision of financial inclusion. Arth Impact is more focused towards a solution that could ease the everyday cash flow problems.

The attractive features and benefits of Happy Loans are as follows-
·       Lends Rs. 2000 – Rs. 1 lakh ( for ex – you may take the loan to re-do your shop/ buy some new items)
·       Flexible tenure of repaying the loan beginning 30 days
·       Loans are disbused within few hours
·      No physical filing of documents required
·      Complete end to end digital process to seal any leakages
·      Low cost, as the complete lending is digital, minimizing the operational cost
·     Customer without credit history, can build credit history by taking loan from Happy Loan
   Moneystreets Take – Besides structured microfinance Industry, Arth Impact promoted “Happy Loans” stands out with its low cost structure, easy interest repayment, and flexible tenure makes it a convenient option. The background of the promoters is credible and note-worthy which ensures a superior experience. With end-to-end digital solution, it is new-age product with best experience for the customers.

#happyloans #digitalloans #paperlesss loans

Loans are not bad, we need to be responsible with it

#Loan and the peril of the compounding
The topics on savings and investing through various means and modes have become quite popular, thanks to the conscience of regulatory bodies and growing numbers of personal finance experts. Before we go into any other diacussion, we need to appreciate that Indians are known for their savings habbit with more than 30% of their income goes into savings. In Investing, wide range of financial products have been introduced through last three decades. Mutual fund industry alone trebled their assets under management with Indian retail investors in last decade. Concept of SIP and power of compounding is already doing the magic. However, the overall financial behavior is yet to mature. 
The term “risk” doesnt go well with our especially middle class elders. The younger generation however are more experimental given their high disposable income and less family responsibility and small family structure. In last 100 years Indian economy  has gone through massive change, so is the socio-economic behavior. But due to lack of adequates and inherent orientation, the new earning fraternity is often found clueless and spoilt for choice on the financial front. 
Loan is one of those frowned terms in Indian households as the equity investing has been. Thanks to evergrowing mutual funds industry, it has turned around the conservative indian investors by beating market returns and with superior offering. But, loan is still a forbidden word owing to our paternalistic regulators and still conservative experts. Its high time, that we look at Loan more rationally. This is not neccesarily an evil. The evil is caused because of irresponsibility, which is result of low or no understanding of the product. Loan as a financial instrument is one of the oldest financial products in the world. If we have to define loan in simple terms, when we are depositing money in the bank, we are lending our money to bank and bank in returns is giving us predecided interest depending on the tenure. Same way bank lends out with a predecided term and interest rate. The difference is bank being a large institution with huge establishment and loan repayment capacity, it offers us lower interest when we lend to the bank and it charges a higher interest rate from the customers, as it runs higher risk on its capital by lending to individuals. 
Decade ago things were little different. Especially India had a practice of “sahukar”, the informal lending channel, which ruined many households with malpractice for centuries. The trauma and fear has been carried as burden by generations. Even post independence, untill 1990s, the interest rates were very high in the banks and with the compounding effect, cost of loan was very high. But, with lowering the interest rates and competitive environment, loans are available at much lower cost. 
However, no way I mean that one should take a loan without any rhyme or reason. The way investment has a purpose, loan should be taken 1. If it is absolutely neccesary 2. You have enough money to pay and just want to ease the cash crunch. Lending beyond repayment capacity will create huge trouble.
The way investing early is applauded because of power of compounding, for loans it is exactly opposite, we may call ot as “peril of compounding”. If one misses out loan repayment instalments, the interest would be added to the outstanding amount and the interest will be calculated on the whole outstanding ruther than the principal in the next instalment onwards.
Given all the facts, India is waking upto the reality of modern financial system of the world, and doors have opened for new age loan products especially in the personal loan space like peer to peer lending, short term small loans lending, credit line addition to our ever evil Credit Cards. Thanks to prudent approach of RBI and CIBIL history, loan industry is well regulated. In all likelyhood, loans will be mire accepted product and will be used very responsibly by us

Small and short term loans are new flavors of the season

High time we change our view about loans and make most of it!
Loans and debts are usually not the favourite words of Indians! It generally reminds of all negative emotions! But no more, if you are a good money manager, it helps you live a better life. It is no more just about emergency, loan has become a convenience tool too. The misselling and misusing credit card has left Indians with a bad taste for debt. Let us see how the short, quick and small loans are actually much more than just convinience. Prudence in repayment approach is a must.
There are series of offerings by non-banking loan providers and innovative concepts launched in last couple of years by Start-ups to attract Indian investors and borrowers, gradually making an entry. The target audience is specially the young 20 something’s and early 30 population who are comfortable with their financial positions.
The #peer2peer lending companies like i2i funding, lendbox are few names which is a new concept of getting landed and borrower at the same platform The loan amount, payment terms are flexible.
The NBFCs are joining hands with apps to provide #short-term-loans of up to 1 lakh rupee for a period of 3 months, 6 months and 9 months. PAYSENSE is one such app. The interest is 1-2% per month.
What is #short-term-loan?
it is nothing but unsecured personal loan taken for a short period. Generally a short term indicates time period less than a year. Few companies offer repayment period of 3-6-9 months.
What is a #small-loan?
small loan in individual context is Rs. 1


When do you use it?

As the name goes, you should take this loan only when you are sure of repaying it comfortably within the stipulated time limit without any struggle. It’s best for unplanned small expenses, which you are sure of repaying in splits within the boundary of salary in few months. It could be for a small vacations, medical expenses, buying a gadget without breaking your bank FDs or Mutual Fund savings. 
How is it beneficial?

It has some interesting benefits – 
1. It can help you build your credit history, which will help you for future big ticket purchases like home loan, personal loans etc.
2. On timely repayment, it helps you get a better CIBIL score which may be useful for negotiating interest rate for big loans
3. It helps you get a better understanding of documentation for loans, which will help in future
4. It helps you avoiding untimely withdrawal of your long term planned investments and plan repayment within your few instalments from your salary
5. Makes you financially more aware and responsible
6. It can help you bridge the liquidity gap, when you are sure of getting the sum in short period like salary or maturity of FD within a short period of time.
Word of caution
1. Loan amount shouldn’t be more than your 2 months salary
2. You should be well prepared and calculated about your repayment ability and sources of funds
3. The interest rate in these products are higher than bank loans, so choosing minimum amount with shorter tenure is advisable.
4.On non-repayment, the penalties may ruin your pocket as well as credit history.
5. Check with the borrower thoroughly on the term and conditions, required documentation, actions in non-timely repayment and interest rates
6. The interest are higher than Banks. So checking the exact interest viz a viz banks and NBFC would be prudent. 
It’s a convinience product and should be used with a proper repayment plan. It will be unwise take a hasty call taking such loans on emergency without understanding the implication

i2ifunding – UBER for a quick loan and high fixed returns!

How many add-ons is right for your car insurance?

This is a post for the savvy investors! the investors who really want to make their money work hard and enjoy the returns!! the newest financial product in the block!! and you must know about it!!
Are you a comfortable investor with diversity in mind? Have done some investments in Equity, mutual funds, and fixed deposits? You will be pleased to know that there are few more investment opportunities opening up your way with some interesting #alternate-investment options.
One such concept I came across last week and wanted do a basic research before sharing with you all. After checking online, I realised, the concept is globally recognised. The concept is peer to peer lending. Globally a well-known concept, it is slowly but steadily catching up in India, RBI has already published consultation paper on the same.    
What is peer to peer lending?
It is an easy concept of lending and borrowing, where the investor and the borrower both are individuals and not institutions like Banks or Non-banking finance companies. P2P lending in  India concept thrives on high income for investors on unsecured personal loans. #i2iFunding is one of the first movers in this space.These platform focuses on high vigilance and smooth interface.
How does it work for the investors?
Investors need to do a simple registration on https://www.i2ifunding.com/.
  1. Registration– A simple form needs to filled including personal details
  2. Register as an Investor – Upload profession details, and upload address proof and PAN Card for verification purposes
  3. Review preapproved loan projects – #i2iFunding only reflect the loan projects which ae pre-verified by the team basis the borrower profile and requirement. The loan request of the borrowers are verified by proprietary credit-score model and recommend interest rate
  4. Wallet  – The investor can start investing from Rs. 5000 and multiple of 5000 upto Rs. 5 lakhs
  5. Physical verification and documentation Once the loan approved by the borrower, i2i funding does a physical verification followed by signing a legal contract. Investor has to provide undated cheque equal to EMI amount for each investor. #I2ifunding shares the digital copy to each investor.
  6. Transfer funds and receive payments from next month – After all the legal formalities, investor needs to transfer funds directly to borrower’s account, and repayment starts next month onwards.
  7. Building a portfolio – Investors can give multiple loans and as per his risk appetite and earn monthly returns. ‘My Account’ section helps track investment details
Benefits for the investors-
  1. Diversify portfolio with high fixed income
  2. Freedom to chose loan projects based on risk apetite and return expectations
  3. Cap on funding each borrower at 20% of the loan amount, reducing over-exposure, concentration and mitigating risk
  4. Capital protection guarantee for the investors subject to the risk profiles of the borrower’s of the loan projects  (investing in loan projects of cat A borrower has highest protection)
Process for Borrowers-
Once you are registered,
  1. Create a borrower account – Register with your personal details, income detail, employment status etc
  2. Loan assessment by i2i – 40 parameters including education background, CIBIL Score
  3. Make loan live on i2i funding website – Post the assessment, make your loan live on i2i platform
  4. Get funding commitment from Investors – Registered invetors across India can see your requirement and apply
  5. Physical verification and documentation –  i2ifunding will do verification of original documents, you also have to share 3 EMI cheques for investors to hand over
  6. Loan disbursal and repayment – Once the verification done, lenders will directly transfer the money in borrower’s account and borrower need to start repaying from next month
Benefits for the borrower
  •        Low Interest rates
  •        Quick hassle free process
  •        No pre-payment penalty
  •        Funding in few days
Borrowers are categorised based on their credit profile, employment status and few other criteria. The category A-F reflects the credit profile order, A denoting the safest category and F is for the riskiest category. With increase in risk category, cost of borrowing increases which is illustrated in the table below.

Charges you need to keep in mind – 
 Charges
Investor
Borrower
Registration
Nil
Nil
Create a borrower account
N/A
Rs 100
Create an investor account
Rs 500
N/A
Increase in the wallet
– Nil up to first Rs 50,000
– 1% for additional increase
N/A
For Salaried Borrowers
Loan processing fee payable before physical verification. (Minimum processing fee is Rs 2000)
Risk Category
% Fees
A
3.0%
B
3.5%
C
4.0%
D
4.5%
E
5.0%
F
6.0%
For Self employed Borrowers
Loan processing fee payable before physical verification. (Minimum processing fee is Rs 2000)
Risk Category
% Fees
A
4.0%
B
4.5%
C
5.0%
D
6.0%
E
7.0%
F
8.0%

Other Charges
Investor 
Borrower
In case of prepayment
No Charge
In case of change in loan amount before receiving any funding commitment post listing
Rs 100
In case of change of bank account details
Rs 200
Rs 200
My take – It is an interesting #alternate-investment option, with stringent guidelines. However, it is new in India. Investors with moderate to high risk appetite can look at it. One may look at borrowers with high ratings like A-D for good yet safe return on investments.
Checkout the website https://www.i2ifunding.com/ for partnership program too!!

Money goes digital – how do I do online transactions

Online transactions are easy, safe and convinient. There is no tension of getting theft or losing money in the crowded market place or in a hospital. It is accepted every established shops, cinema hall, jewellery shops, hospitals even can services.

It wasn’t any different day for Rajiv, he woke up, looked at his mobile, checked the news app, freshenup, got ready and booked an UBER cab, today he had got Paytm offer, so paid by it. He got down right at the office door, he found many people gathered in groups discussing #demonitisation. Though he wanted to share his views too, but he was running late and wanted to have breakfast at office cafeteria, he had a full plate chole nature and paid by his preloaded card and entered his desk. His work was going smooth with occasional interruption with the demonitisation of currency, suddenly a reminder popped up! it was his fiance’s birthday and he had forgotten it. An idea struck his mind, he checked and found an online offer on cake and bouqet, he paid through credit card and ensured a delivery to her office within 1 hour making it a real big surprise for bday!
Day passed by and he managed very well with cards, net banking,credit cards, pre paid card hardly disturbing his daily routine.

But this is not the case with all of us. It’s high time we understand the benefit digitisation of money and ease of using it. 
How do we get at ease with digital transactions
There are atleast 6 broad category available to make most of your money digitally.
1. Net banking – Most of the time it is sheer inertia or misconceptions to create a net banking account attached to your existing savings account more than fear of online money theft. This has become all the more convenient with the launch mobile applications in the same. One can use it for checking balance, create fixed deposits, recurring deposits, transfering money to other accounts, pay utility bills, credit card bills, buy mutual funds, insurance and even apply for #IPO. For transactions, one can opt for #NEFT #RTGS #IMPS options available in the website itself. These secured transactions with password and security check through mobile varification.
Debit card – This is the oldest form of plastic money. Very common yet less used in transactions other than withdrawing money from ATM. With the ATM PIN, one can use it for online transactions as well as at merchant counters i.e. shopping, dining, movie tickets everything. 
Credit card –This mode exist as long as debit cards, but this is a tricky one. This is not your money, this is a short term loan which attracts very high interest on non payment in he stipulated time. This is a good mode if one uses responsibly. 
Online wallets 
This segment is picking up in India. This wallets can be loaded with money using netbanking and can de used in small amounts.The best part about the online wallet is transaction gateways are not exposed to the bank accounts, hence safer. These are like actual wallets and money can be transfered to anyone with the same online wallet. #Paytm #MPesa are some example of e-wallets. There are some charges attached when you transfer the wallet money to your own account.
UPI – It is government’s answer to e-wallet.It is an interface through which account holder of one bank can transfer/receive money to someone having account in same/different bank through smartphone. Multiple bank accounts can be linked to a single cell phone. The transaction takes place through virtual address hence, no requirenent of bank details There would be no need to enter bank details.Transaction can be authorised by entering either Aadhar card number or mobile phone number. It can be used for shopping, Bill payments etc.

Prepaid cards – It is nothing but your own money loaded in the card, can be used like a debit card, howeve unlike your debit card it is not attached to your savings account

error

Found the information useful? Please spread the word :)

Latest post alert
Pinterest
fb-share-icon
LinkedIn
Share