Digital payments company Mobikwik has announced instant credit loan in the range of Rs 5,000-60,000 for its customers. With partnering NBFCs, the new offering called ‘Boost’ will sanction as well as disburse loan in a matter of 90 seconds, claims the Gurugram-based company.
The Sequoia-backed company has been trying to enter lending space for the last one year.
In July, the company had also launched a similar product to target millions of new to credit (NTC) customers as well as small business owners in the country. However, the ultra-short instant loan had a credit limit of Rs 5,000 only.
Entrackr has reviewed Mobikwik’s new offering and it works like other fintech lending platforms with simply explained guidelines. Users are required to update their KYC with PAN card and other details to avail the desired loan amount.
Available only for Android users, ‘Boost’ offers paperless and collateral free loans on the basis of an innovative risk scoring model called ‘Mobiscore’, developed by the company itself.
The loan amount is payable in easy installments of 6 to 9 months. Users can either payback from the MobiKwik app or can enable MobiKwik’s partner to auto-debit the monthly EMI from their bank account.
According to Upasana Taku, Mobikwik co-founder the company has deployed artificial intelligence and data analytics tools for the real-time underwriting, reports ET.
The instant loan has a variety of use case and the company forecast that it can be used for urgent purchases, marriage expenses, travel plans, hotel bookings, medical emergency, as well as payments to offline and online merchants.
In a nutshell, Mobikwik’s new offering will be welcomed by over 3 million direct merchants and more than 260 million users on its platform.
Last month, e-commerce giant Flipkart and Amazon had launched similar offering for their frequent customers. The intention behind credit loan is targeting e-commerce shoppers during the upcoming Diwali sales.