Paisabazaar.com, an online marketplace for financial products, on Monday said that it has reached a milestone of registering an annualised loan disbursal rate of $ 1 billion.
Unsecured loans, which includes personal loans and business loans, form the majority share of the disbursals taking place through the Paisabazaar platform. Currently, Paisabazaar.com disburses Rs 480 crore of unsecured loans every month, with a dominant share of these loans going to salaried prime customers, who have an in-hand monthly income of over Rs 25,000 and credit score more than 750.
“The milestone of reaching $ 1 billion run-rate is significant because it shows the size of the Indian lending market. If one looks at unsecured loans alone, even at such high volumes that Paisabazaar is doing, we are only 2 per cent of the unsecured lending market. Over the next 3-4 years, our aim is to reach 10 percent of this market,” said Naveen Kukreja, CEO & Co-founder, Paisabazaar.com.
In terms of age distribution, 66 per cent of borrowers on the Paisabazaar platform were 35 or below years of age, signifying a young customer base which is choosing digital to get access to credit, he said. Paisabazaar.com partners with more than 90 banks and financial institutions, which include India’s biggest public and private banks, NBFCs, digital lenders and mutual fund companies, to offer more than 300 products that cater to all personal finance needs of its consumers. Since its inception in February 2014, Paisabazaar.com has witnessed 150X growth and is the clear marketplace leader for lending products, according to industry estimates.
Currently, Paisabazaar.com receives more than 2 million product enquiries every month from over 1100 cities and towns across India. The popularity of the smartphones has also been a game-changer for digital platforms, with more and more incremental traffic coming from smaller cities and towns through mobile. Paisabazaar.com today gets 86 percent of its 23 million plus monthly traffic through mobile, as compared to 59 percent in April, 2017.
Paisabazaar.com has also witnessed a big surge in demand for credit products from Tier II and III cities, signifying the increase in popularity of the digital channels in accessing credit in the smaller cities. Loans from outside the Top 10 cities today contribute 41 percent of the total disbursals through Paisabazaar.com. Two years ago, only 18 per cent of the loans were disbursed to locations outside the Top 10 cities.