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India's First Product of its kind, FlexSalary, a Virtual Unsecured Personal Emergency Line of Credit Launched Nationally at Hyderabad

  • Wednesday, August 9, 2017 11:32AM IST (6:02AM GMT)
Hyderabad, India:  
  • Vivifi is looking to raise INR 100 crore
  • The Indian Lending Business Size is put at $ 1.2 Trillion
A Hyderabad-based Fintech Startup, Vivifi India Finance Pvt Ltd, a Non-Banking Finance Company (NBFC), announced today the national launch of FlexSalary, an online virtual unsecured personal emergency line of credit which is built with the vision to help individuals steer away from the awkwardness of short-term cash crunches.
Currently the start-up is self-funded and is looking to raise INR 100 crore, towards Lending Capital and Operations. The Indian Lending business with a size of $ 1.2 Trillion with over 40% being under-served or unorganized, is ripe for disruption with innovative lending models
The startup founded by Anil Kumar Pinapala, Srinath Kompella and industry veterans, offers as its first product, salary advance loans to salaried employees in the Organized and Unorganized sectors.
Many salaried individuals fail to secure credit with traditional financial institutions since they fail to meet the narrow, stringent and traditional lending norms from the service provider. Sometimes the causes, for which money is required, do not qualify for a typical bank or traditional NBFC loan, and in many cases, there is no loan product that addresses short-term credit needs which may last just for a few days.
Consumers, especially millennials, are more comfortable using technology to find and sign up for quicker credit informs Patrick Kishore, the Chairman of the company who has 37 years of experience in the Indian Banking and Financial Services Sector while addressing a press conference here in Hyderabad today. He has served as the COO of IDRBT and was instrumental in the implementation of RTGS/NEFT and has worked directly with RBI on several Regulatory Framework and Guidelines.
Vivifi, is set-up with an objective of serving the financial needs of the Under-Served customers with a Risk-based pricing model and a customer acquisition and loan origination process that is technology-driven. Our first product offering is where you get an instant line of credit against your salary anytime. In other words, it is “your salary in advance,” said Anil Kumar Pinapala. CEO of the company, Anil has over 17 years of experience in the Fintech domain.
Anil is a Technology thought leader in the small ticket sub-prime lending and has immense experience in Machine Learning Risk Algorithms for Underwriting and automated loan origination and servicing.
FlexSalary is an open-ended line of credit, where borrower decides the loan tenure, says Srinath, Co-Founder & COO who has 15 years of experience in the Fintech domain. He has been instrumental in devising Credit Service Organization-based subprime lending operations.
Customers can sign-up for FlexSalary with an easy and simple one-time application with an instant approval, instant disbursals and the ability to access credit anytime. This is a unique product with no fixed EMI payment and providing the customer continuous access to cash from their available credit limit. The customers, can avail discounted interest for seven days on cash for their emergencies, by opting into the membership program.
This product is ideally suited to handle any short or long-term cash crunch to pay for vehicle expenses, to head off on holiday, to make credit card payments, to pay tuition or school fee, to not miss an EMI payment, to protect credit score, to meet unplanned medical expenses or for medical emergencies.
An emergency is a serious, unexpected, and often dangerous situation requiring immediate action. When life presents such a case, it threatens financial well-being and causes stress. At these times, is there enough cash available to pay for these unexpected expenses? Can you borrow money in an emergency? Could you get a loan from friends, family or your bank? Or would you rather have access to an easy online line of credit to handle emergencies? FlexSalary is the solution. It is the futuristic product.
The virtual unsecured personal Line of Credit will be extended from as little as two thousand to two lakh to qualified individuals in India.
Banks do not offer such products and only entertain borrowers who earn above a certain limit. If salaried individuals are looking for small loans for a few days, weeks, banks might not show interest, due to the costs they incur.
Now, such left-out borrowers can turn to an online platform like flexsalary.com.
None of the existing banks are leveraging technology for salaried lending. So we have built an entirely paperless lending platform which will revolutionize the way consumer loans are executed, says Srinath.
There is a gap in the Indian credit system, where there is a large under-served segment stretching across Organized and Unorganized sectors estimated to be as much as 40% of the consumer lending market. There are no existing solutions for these under-served customers, which are offering true risk-based pricing models thereby providing access at a fair price. There is a massive opportunity. India is a credit hungry economy. Alternative lending space is the solution, says Anil.
There is a regulatory and physical limitation for banks in meeting this burgeoning demand. With 7,935 towns and cities in the country, even the largest of the large banks have limited reach. Online lending and omni-channel customer acquisition can meet this unmet need, added Anil.
But, lending is not easy, Anil added quickly, so we built a robust system to provide personal loans instantly.
We, through an online platform, just work more like a bank on consumer lending. The Borrowers go through Know Your Customer (KYC) requirements. Using our proprietary machine learning-based Credit Decision Model we go beyond the traditional score as provided by CIBIL or Experian, so we layer in Income, Social, Spend Analysis, Educational, Employment, Behavioral and data to determine the true credit worthiness of the customer and their Ability to Repay.
The alternative lending space has shown strong signs of growth. USA and China are the two countries, which are making swift progress in the Online Lending space. The old rules of the game need to change. The traditional way of hunting for loans offline replaced with an online credit line. Because of customers comfort using smartphones coupled with technology the process of online loan disbursal even smoother with the arrival of India Stack (which includes Aadhar, e-KYC, e-Signatures and UPI).

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