Get quick loans from your phone

No CIBIL scores, no security. New-age finance companies use social media to make lending decisions

The linking of Aadhaar to PAN number coupled with the widespread use of social media is seeing the emergence of a new generation of finance companies. They leverage these reliable proofs of identity and tax-paying status, coupled with a person’s Facebook or Twitter presence, to offer quick loans. Quick is correct. If you are a salaried person with a temporary financial difficulty, you can feed in some KYC details, salary slips and Aadhaar number using a mobile app and apply for a loan below `1 lakh for one month. Chances are it will be approved and the money will be electronically transferred to your bank account within 10-15 minutes. Pune-based EarlySalary.com provides instant loans from `8,000 up to `1,00,000. Up to fifty percent of monthly salary can be applied for and the loan period could be as small as seven days, but is typically for a month. Existing customers applying for a repeat loans get three EMIs options across 90 days and upto `2 lakhs. Such loans come as a boon to professionals to tide over a temporary difficulty without having to prove credit worthiness through CIBIL scores or having to provide security.

The lending rate is `9 per `10,000 per day. More than half the business for EarlySalary.com comes from staff of companies who have been pre-registered. As the name says, they can avail a part of salary in advance, which is collected on the next pay day. The company currently operates in Pune, Bangalore, Mumbai, Chennai, Hyderabad, Delhi NCR, Jaipur, Ahmedabad, Visakhapatnam, Mysore and Coimbatore, and only serves salaried people.