Since the pandemic it has disbursed over Rs 105 crore of Covid-19 loans to meet medical expenses, Loantap co-founder and chief executive Satyam Kumar told PTI
Digital lender Loantap that’s only into personal loans, expects to take its disbursal to Rs 1,000 crore this fiscal, up from Rs 370 crore last year, given the higher demand for home improvement loans, electric two-wheelers, and pandemic-related medical expenses.
The Pune-based company, founded in 2016, has so far disbursed Rs 650 crore to over 33,000 customers, of which Rs 370 crore are live now, up from Rs 330 crore in FY19. Since the pandemic it has disbursed over Rs 105 crore of Covid-19 loans to meet medical expenses, Loantap co-founder and chief executive Satyam Kumar told PTI.
With two rounds of funding of USD 25 million, the fintech company is backed by 3one4 Capital, India Quotient, Shunwei Capital Kae Capital, and Avaana Capital which got onboarded through the recent USD12 million in series B round, Kumar said. He claimed that in the electric two-wheeler funding space, Loantap is the single biggest player with an exposure of Rs 25 crore of the Rs 70 crore market.
Its largest book is the home-owner loans, constituting 30 percent of the Rs 370-crore loan book, followed by medical loans (both as personal loans) with an exposure of over Rs 65 crore or around 19 percent of the book and the rest is consumption and holiday loans. ‘We hope to double our fresh loans from Rs 370 crore in FY21, taking the overall disbursal to around Rs 1,000 crore by March, if there is no third wave,’ Kumar said.
The company charges 13-18 percent interest and its average loan size is Rs 2.3 lakh, with the upper cap being at Rs 10 lakh, and the tenure varies from 12 months to 36 months, he said. The company has a debt of Rs 260 crore on its book and an equity capital of USD 25 million, Kumar who was with Indusind Bank and ICICI Bank for a long, said. Stating that the company is profitable he said his operating cost it only 4 percent, while the cost of funds is 11.9-12.5 percent. Currently, it is present across 22 cities, including Mumbai, Delhi, Bengaluru, Pune, Chennai, Kolkata, among others.
Source: Business World