● Cashfree’s loan automation solutions are used by leading lending platforms including Northern Arc, Early Salary and PC Finance among others
● Cashfree plans to help 1000 lending businesses automate loan disbursals and collections by March 2021
● With the launch of the lending suite, Cashfree’s goal is to render unparalleled services to the entire industry by enhancing user experience and process efficiency
Bangalore, March 11, 2020: Cashfree, India’s leading business payments platform, has announced the launch of a suite of payments products, for lending companies and NBFCs, which allow easy loan disbursals to businesses and individuals across all platforms.
Cashfree has pioneered instant loan disbursals with an integrated credit disbursal approach through its API banking product and is currently working with lenders, loan management software and banks. At present, Cashfree’s solutions are used by many major lending businesses, including the likes of Northern Arc, Early Salary and Chinese-owned NBFC, PC Finance, to name a few.
The NBFC - Lending suite includes solutions such as:
● Payouts – Facilitates instant loan disbursals from a lender’s bank account via IMPS or UPI
● Bank Account Verification – Allows API verification of borrower’s bank account number
● Collection solutions like Subscriptions via e-mandate – Automates loan repayment collection by allowing borrowers to authorize lenders to debit their accounts
Akash Sinha, CEO & Co-founder of Cashfree, said, “The lending ecosystem has witnessed remarkable transformations, and is now marked by changes in operations, availability of capital, new laws and regulations around lending, differences in borrower eligibility criteria and terms of loan acquisition and repayment, among others.”
He added, “Innovations in the payments technology space have played a crucial role in driving this evolution. Now, new fintech players are penetrating the market to supplement legacy leaders and drive innovation, enhancing flexibility and fostering technology adoption to stimulate healthy competition in the banking segment. As a result, the country has witnessed a significant rise in the amount of capital infusion in the system, by Indian and global participants, in the last six months.”
“With our lending payments suite, we intend to tackle this surge by speeding up the process of lending and recollection, all in all, while enhancing efficiency and user experience. Our goal is to provide flawless experiences and unparalleled services to the entire industry, including lenders, agents, banks and borrowers. Apart from assisting lending businesses, we are also working directly with loan management platforms and banks to bring more efficiency to the game,” he added.
Lenders can integrate Cashfree’s lending suite with their existing loan management platforms and initiate disbursals from their bank account, instantly upon loan approval. Similarly, when a loan repayment is received, it is updated automatically in the loan management system.
India’s lending segment has witnessed massive developments since 2018, owing to the increasing demand for credit in the nation and rapid advancements in the fintech space. As per a joint study by Omidyar Network and Boston Consulting Group (BCG), the Indian digital lending market can grow up to 7 lakh crore by 2023. This means annual disbursements may multiply 15x within the next two years.
Cashfree has recently launched its Instant Settlement feature, which helps businesses access funds within 15 minutes of payment capture via its payment gateway as compared to the industry standard. The feature helps online businesses with increased working capital availability and has reportedly seen rapid adoption.
Cashfree is a payments and banking technology company that enables businesses in India to collect and send money around the clock. Founded by IIIT Hyderabad alumnus Akash Sinha and IIT Kharagpur graduate Reeju Datta, Cashfree enables more than 50,000 businesses with payments collections, vendor payouts, wage payouts, bulk refunds, expense reimbursements, loyalty and rewards. Incubated by payments pioneer PayPal, Cashfree is backed by Smilegate and Y Combinator.