Online PSB Loans raises Rs 50 crore from HDFC Holdings, TransUnion

Lending marketplace Online PSB Loans (OPL) has raised Rs 50 crore from HDFC Holdings, a wholly-owned subsidiary of HDFC, and global information and insights company TransUnion Strategic Investment (TRU).  

The investment will see both TransUnion and HDFC take strategic minority holdings in OPL, the company said in a statement. It, however, did not mention how much stake HDFC Holdings and TransUnion will hold in OPL. 

Online PSB Loans is a lending platform that enables borrowers, primarily Micro, Small and Medium Enterprises (MSMEs) and individuals, to apply for a loan online and receive in-principle approval in 59 minutes or less from a bank or credit institution. 

Also Read: HDFC invokes pledge on 50 lakh shares of Ansal Housing to recover outstanding dues

The fund raised will be used in helping facilitate retail and MSME financing, according to the statement. 

"Through the partnership, all three companies will combine their unique strengths and capabilities across data, technology and analytics to explore the development of new products and solutions, which would transform the lending landscape in the country," OPL said.  

Commenting on the development, Jinand Shah, MD & CEO, Online PSB Loans said, "When we can bring more opportunity to India's small and medium-sized businesses and individuals through improved borrowing practices, the possibilities are endless."

"Together with TransUnion and HDFC Ltd. team, we will expand access to lending services and improve analytical capabilities for our customers," added Ronak Shah, Co-founder & COO, Online PSB Loans. 

Meanwhile, Rajesh Kumar, MD & CEO, TransUnion CIBIL, a TransUnion Group Company, stated that OPL's technology will let the company better service clients in India and "further its commitment to small businesses as critical drivers of global economic recovery."     Renu Sud Karnad, Managing Director - HDFC Ltd said the "breakthrough innovation" for the MSME sector will benefit all stakeholders since the MSMEs are a major contributor to the socio-economic development of the country. 

Also Read: RBI panel's recommendations to promote orderly growth of digital lending, say industry players   "Digitisation of the lending process will improve customer experience and help in significant cost and time savings. This is the preferred medium of credit delivery to the customers as has been our experience as over 89% of new home loan applications are received through digital channels," she added. 

The initiative aims at the automation of various processes in loan appraisals in such a way that MSMEs get an eligibility letter and an in-principle approval in 59 minutes and retail borrowers get it in less than 15 minutes from all PSBs/leading private sector banks and can choose the bank of their choice.     "The value of the contactless business loans offered range from Rs 10,000 to Rs 5 crore. The rate of interest is amongst the lowest. The solution uses advanced algorithms to analyse data points from various sources such as IT returns, GST, Bank Statements, Bureaus, Fraud Checks, MCA etc.," according to the statement.