Within six months of its launch, digital microlending venture, Happy Loans announced the disbursement of 4000 micro loans worth INR 10 crore (USD 1.7 million). Happy Loans partners with merchant acquirers, money transfer networks and other partners to offer instant, short-term business loans for small enterprises (SMEs). The flagship brand of the ArthImpact group has so far partnered with MSwipe, EKO, Itzcash, Payworld, Ongo, InstantPay, Wapo, Farmart and more, to create a total addressable base of over one million SMEs.
For a long time, the Indian SME sector had little options for loans and the availability was not very wide-spread. However, over the last few years there has been spurt in micro-financing startups that leverage technology to make the application process completely paperless and some, like Happy Loans, enables on-tap borrowing. Loans on offer are as small as Rs. 2,000 (USD 30) for as short a period as 30 days. Customers can access funds right from their phone, with options such as flexible tenure and daily repayment to reduce the burden of a lump sum repayment.
Manish Khera, -founder and CEO of Happy Loans said the company is aiming to achieve the INR 100 crore (USD 15 million) disbursement mark and a prospect base of over 5.5 million merchants by FY 18. He further added, “We are working with both machine learning and blockchain technologies — emerging pillars of the new banking paradigm – to offer a Happy experience to our customers.”
With borrowers in 167 cities and 25 states, Happy Loans leverages technology to create a new-age, fairer way of banking – fun, accessible by all, and available anytime and anywhere. The company’s loans for India’s 50 million-plus small merchants are less costly and more reliable than informal borrowing.