NBFC targets students for small- ticket loans
Dreams and aspirations tend to get associated with youngsters, but these collegegoing adults are yet to earn their first salary and usually depend upon parents for their needs.
These new adults, however, harbour their own bucket- lists and require finance to pursue them. Tapping into this aspiration, Bengaluru- based NBFC KrazyBee have discovered a new business opportunity — offering credit even before they start earning.
Speaking to this newspaper, KrazyBee co- founder Madhusudan E. said, “Banks were ignoring this segment of people due to their lack of salary slips. While processing, these institutions didn’t take into the account, the students’ ability to earn big in future.”
For a country like India, where youngsters form a majority of the population, they represents a huge opportunity but the traditional lenders were not willing to cater to them. “Traditional lenders found the average ticket size for such loans were too small. We found it worth taking the plunge.”
The company, which got its licence from RBI in May, said NBFCs such as IIFL are already partnering with us.
KrazyBee, which is oneandhalf- year old, already operates in 11 cities and has plans to expand into another nine cities, including Warangal, Karimnagar, Medak and Nalgonda in Telangana by FY19.