Chief Technology Officer
CurrentWe provide unsecured credit to middle class customers with variable income through a tech-based group lending product that reduces the variance of repayment (read DPD/NPA) of the borrowers by up to 90%.There is a large middle class population with reasonably good bureau score and good average income, but high variance in income periodicity. They could occasionally enter DPD-90 (delayed EMI payment). Due to lending regulations, and recent improvements in transparency through co-lending, a single DPD-90 event calls for provisioning and transitively the retail lender has to move the loan to a totally equity-based loan and will not be able to use debt leverage. This terribly affects the debt-equity ratio of the portfolio and hence the RoE of the retail lender drops significantly. Hence retail lenders are averse about this segment, even though the average lending rates are in the range of 27-36%. Bureau based estimates put the size of this segment around 5 crore potential customers with a combined requirement of Rs 2 lakh crore a year. We are trying to cater to this segment without incurring the said penalties through an innovative tech and financial product. We use tech as the medium to reduce friction, reduce OpEx and increase scale.https://www.friendloan.in
