Navi, a financial services startup by Flipkart co-founder Sachin Bansal has officially launched its mobile application which was in Beta mode since April this year. The startup is aimed to provide instant personal loans to middle income segment consumers. The app is currently present only on Android systems through which customers can gain loans instantly through a contactless medium.
The app will provide instant loans of up to Rs 5 lakh with repayment timeline of 36 months within 10 minutes. The entire process is digital and contactless. The customers can check their eligibility on the platform as well as select the loan and EMI amount. After giving their Aadhar and PAN details, the users can receive the amount within their accounts instantly.
The process is also paperless which does not require the uploading of any sort of documents like bank payslips. This approach is possible due to rich consumer data available because of KYC. To assess loan applicants and prevent fraudulent transactions, app-based lenders source customer data from trading and brokerage accounts, and credit and debit card transactions directly from banks. Besides, a customer’s employment information and credit history are also accessed from credit bureaus approved by the Reserve Bank of India.
The platform was launched in BETA mode during early days of lockdown to help the people who can not step out to get the loans for emergencies such as education, medical and family or any other urgency.
Samit Shetty, chief executive of Navi Finserv, the NBFC owned by Navi said, “With more and more people opting for online channels and apps for all their needs – including financial services – in the past few months, the Navi lending app received strong response from Tier 1, 2 and 3 towns during the Beta phase. This gave us the insights and confidence to launch it officially in such a short time. We are now scaling the app across 150 cities in India.”
Bansal founded Navi in 2018 once he moved out of Flipkart which raised Rs 204 crore from Gaja Capital in April. The Bengaluru-based firm had already raised Rs 3226 crore from Bansal and other angel investors.