Making digital loans easy: CASHe disburses Rs 1,000 crore to millennials, eyes 10% market share

CASHe, the digital lending company for young salaried millennials, has crossed Rs 1,000 crore in loan disbursements since its inception in April 2016. The company is now eyeing to disburse another Rs. 1000 crore in the current fiscal, reaching a cumulative loan disbursement of Rs. 2000 crore by FY19-20. CASHe provides a range of short-term loan products ranging from Rs 10,000 to Rs 2,00,000 with a repayment tenure ranging from 15 to 180 days. CASHe told Zee Business Online that in three years since inception it has cumulatively disbursed 380,000 loans to over 200,000+ customers, accounting for an average daily disbursal of Rs 3 crore. Up to 85% of the unsecured loans worth Rs 1000 crore have been disbursed in top 8 metros.

Bumper demand!

CASHe said it receives over 3000 loan applications in a day and the average loan ticket ranges between Rs 35,000 to Rs 40,000.

AI-power

An AI-powered alternate credit rating system - Social Loan Quotient (SLQ) helps in faster disbursal of credit. The company said that SLQ uses big data analytics through predictive modelling and machine learning-based techniques on its large customer base to create an instantaneous credit decision for its users. There are over 3.5 million registered users on CASHe platforms. The company offers quick and easy access to short-term loans with low interests and easy EMIs for young urban working millennials which eliminates the hassles that traditional banking brings with itself.

Commenting on the achievement, CASHe chairman V. Raman Kumar said, “We are excited about crossing the 1000 crore milestone and feel that we have built a significant scale in this space in a very short period of time."

"Innovation is at the core of our operations and we will continue to offer attractively unique and diverse products to our customers whilst setting new benchmarks in customer satisfaction and operational standards," he added.
CASHe is eyeing 10% share of the unsecured lending market. “Having clocked an annual run rate of over Rs 500 crore in the last fiscal alone and backed by strong customer demand we are poised to achieve yet another Rs 1,000 crore disbursal target by 2019-20 fiscal," said CASHe CEO Ketan Patel. 

"On long-term, however, we are eyeing 10% share of the short-term unsecured lending market – a target we aim to achieve in the next 5 years," he added. 

Why millennials opt for digital loans

A recent analysis by CASHe found medical expenses were the top reason why millennials opted for digital loans and it accounted for almost 22% of the loan pie.  Shopping for gadgets, electronics, wedding season etc also ranked among the top reasons.  As many as 10% of the customers availed loans for travel, Christmas/New Year and Diwali were among the leading occasions when millennials opted for loans. Another interesting data point revealed that of the entire customer pie, females accounted for just 12% vis-à-vis 82% of their male counterparts.