Coronavirus: True Balance commits to solving liquidity crunch, last-mile credit in India
True Balance, fintech app operated by Balancehero India – the wholly-owned subsidiary of Balancehero Co Ltd Korea – today announced that it disbursed loans worth Rs 23 crore in March 2020. The group has observed strong growth in loan numbers in the first quarter of 2020.
In Q1 of 2020, True Balance disbursed a total loan figure of Rs 50 crore, bolstered in great part by the launch of the free credit scoring check feature in partnership with Experian, something that has again seen rapid adoption among the user base.
While several players in the lending space have stopped loan disbursals, True Balance intends to continue solving the last mile issue of credit in India. Loan disbursements are 100 percent digital and users can apply and receive cash loans within minutes via True Balance’s mobile application. True Balance hopes this brings much- needed liquidity to Tier-III & IV markets, in India, which account for 45 percent of India’s GDP.
With a loan GTV of Rs 150 crore disbursed across 6.6 million loans nationwide, True Balance has seen rapid growth in loan numbers, both in loan count, as well as loan size. Within less than a year of service launch, the growth rate for the loans service has reached nearly 30 percent month-on-month.
Charlie Lee, Co-founder & CEO, True Balance says, “Pre-COVID-19, we knew credit would help revive the Indian economy. There may be turbulent times at play today, but we intend to stand by our commitment of last-mile delivery of credit to India. Although we are taking a cautious approach, we also understand that this is the time our customers need us the most. Our stringent technology-led KYC process is helping us in quick disbursement of loans to those in need with good credit history. We are cautiously optimistic about the market and expect normalcy to arrive once the COVID-19 situation is controlled.”
True Balance’s lending arm, TrueCredits, received its NBFC license in October 2019, and renewal of PPI license for three years from the Reserve Bank of India. True Balance is currently raising Series C funding to expedite the growth of its lending business across India.
The announcement of strong growth in loans comes on the back of the analysts having announced that the loans segment, especially unsecured loans, will remain a cause for concern for the banking industry as a whole, something that may have a strong adverse impact on nationwide PSL loan disbursal.
Edited by Kanishk Singh