Will reduce acquisition costs & delinquencies for lending cost: MudraCircle
MudraCircle is a combination of the words Mudra and Circle- it’ll aim to connect small businesses looking for funding,
and lenders looking for tapping into a large segment of underserved & unserved borrowers.
This is a team of 4 Co-founders which has banking/ finance, Technology and Data-science expertise between them. MudraCircle is all set for a big bang commercial launch in January 2018.
Vaibhav told us that India has over 50mn+ registered enterprises of which about
92% do not have access to adequate credit. The total MSME funding gap across the sector is about INR3Tn.
Unit economics (in branch and spoke model) does not favor traditional institution penetration in this segment.
Lack of distributor/ trade credit facilities further widens the demand for our services.
One of the other main reasons is absence of reliable credit methodology to assess these unfunded or underfunded customers. We feel getting finance should be quick and easy, so that the enterpreneur can get
back to doing what he/ she do best- running their businesses. Whole system cuts out the complexity and hassle of borrowing.
If enterprenur has gone wrong somewhere with his/ her credit score we help them in identifying the problem and suggest ways to improve the same. With our understanding we also help borrowers to improve credit score by way of financial/ credit literacy education. This credit consultancy will be free for its borrowers.
MudraCircle aims to connect with existing DSAs in the country for getting borrowers
on board as a separate acquisition channel apart from Digital marketing leads.
Partners would have their own dashboards from which they can upload borrower files.
For existing DSAs, complete digital process would result in better productivity & earnings.
At Mudra Circle, we're open to partner with a broad range of businesses, corporates, institutions,
from brokers to advisors and affiliates to retailers and banks to NBFCs. People whom we work with should share our goal
of delivering fast & best-in-class customer experience in
financial services by making money simple and fair.
Ashish said, MudraCircle just doesn’t stop here and it has further made even the disbursement process & repayment completely digital. MudraCircle will just not acquire the customer but also aims to to do underwriting with it’s automated traditional underwriting model alongwith assessing the borrower with alternate data based underwriting.
Ongoing & almost real-time digital footprint collection/ analysis keeps tracking the borrower and gives early warning signals to both Bank/ NBFC and borrower. Basis signals Bank/ NBFC can get in touch with the stressed borrowers to ensure they remain financially disciplined.
MudraCircle just not acquires a customer for the Bank/ NBFC but it keeps digitally tracking the borrower till the time last loan EMI is paid. Goal is to ensure low delinquencies. By ensuring borrowers get money at moderate rates, and investors/ lenders with attractive, risk-adjusted returns; Mudra Circle aims to earn highest satisfaction ratings in the financial services industry.
Anand further adds that MudraCircle combines the best in class technology experience with credit underwriting & data analytics capabilities to create a brand new investment asset class. Borrower can register in less than a minute and complete whole application later in maximum 20 minutes. MudraCircle will present the most scientific and reliable credit assessment of borrowers to lenders which otherwise remain un-served or under-served as majority of these borrowers don’t fit into assessment methodology of traditional credit underwriting.
MudraCircle offers seamless integration with Banks/ NBFCs and they can create & send customised loan solutions for borrowers. MudraCircle also plans to launch application form filling through Voice soon. Whats also part of the plan is scores based on Mobile data, voice recognition, facial expressions and eye movements.