– Capital’s digital loan portfolio recorded substantial growth of Rs. 2 crore to March 19 at Rs.147 crore in February 2022
– Portfolio performance in Capital Digital Loans remains robust with 90+ DPD at 2.7% at February 2022
NEW DELHI, March 9, 2022 /PRNewswire/ — Capital Trust Limited (Capital Trust), a digital non-bank financial company (NBFC), specializing in providing income-generating rural digital loans in Tier III-V regions through its direct access based on the fintech and its 315 branches, has spread to 94 districts in 10 states, with loan amounts ranging from ~Rs. 5,000 to ~Rs. 50,000, reports robust growth in Capital Digital Loan Portfolio (CDL) with AUM of Rs. 147 crore from 28and February 2022. Collection efficiency remains north of 98% for the Capital Digital Loans portfolio. 90+ DPD and 30 DPD amounted to 2.7% and 3.9% respectively on 28and February 2022.
Key Features of the Capital Digital Lending Product
The complete digital process encompasses every step: From documentation and paperwork to onboarding and disbursement. The primary refund method for all customers is NACH. Additionally, the payment gateway has been enabled for all customers through the company’s app and payment link.
Automated disbursement mechanism: The loan decision is made on the basis of the borrower’s credit score, income, credit history and debt servicing capacity. The engine further calibrates itself for regional differences in performance using PIN level data.
Ticket size and duration: The ticket size of this product is at Rs. 30,000 to 50,000, which makes it accessible to a wider clientele. A short tenure of 12 to 18 months makes repayment faster.
Accretive return: Overall, the NIMs for this product are superior to those of the Company’s traditional portfolio. The company has focused on growing this product base to a broader market in existing and new geographies.
Enable digital integration by merging with the physical approach: Although the processes remain digital, to maintain rigorous quality controls, physical visits are also carried out, allowing independence between the data entry by the loan officer and the automated decision-making process in the background . The role of the loan officer is mainly to propose a file to the system having the power of final decision. AI and business intelligence are used to automatically calculate the applicant’s household income based on standardized business size, industry margin and expected expenses.
Collection efficiency for society has been robust despite three waves of covid, while in contrast the industry has struggled to collect. For improved collection efficiency, all unresolved NACH cases are automatically mapped to collection staff and visits are planned on an automated route map via AI-enabled geotagged route mapping. Customer communication is institutionalized via SMS / OBD / paging / physical visits. The risk control department continuously analyzes the payment schedule and risk profile of customers so that the team can focus more on collection efforts for higher risk customers. Overall, 29-30 cumulative collection follow-ups are done to one unpaid customer per month.
Commenting on the performance, Mr. Yogen KhoslaManaging Director of Capital Trust Limited, said: “We started digital equity loans in fiscal 2019 and since then they have grown significantly. The rural home-based fintech model remains robust with a lead turnaround time of less than 24 hours. 100% of these loans are disbursed digitally and more than 70% of collections are made on NACH clearance date (via automated clearance or pre-collection), which helps reduce operational costs and provides better convenience for customers. In addition, it also allows for faster refunds, thus reducing payment defaults. With a significant number of traditional microfinance clients upgrading to the next economic level each year, our Capital Digital Loan product is able to provide them with a fast turnaround time with a digital loan and no center meeting requirements. The company has also started offering a breakthrough interest-free fast digital loan of Rs. 5,000 with a 3-month tenure, last quarter and has seen good traction. We remain rather positive on the growth of the Capital Digital Loan portfolio.
The company remains committed to all of its stakeholders to create sustainable value and remains focused on the rural home fintech model which will drive further enhancement of collections. We are constantly innovating new products to serve the bottom of the pyramid, which will help drive inclusive growth and create value for Capital Trust stakeholders.”
About Capital Trust Limited
Capital Trust Limited (BSE: 511505; NSE: CAPTRUST), a non-bank finance company (NBFC) registered with the RBI, offers income-generating micro-loans to MSMEs. Merging the best practices of fintech and traditional finance, the company focuses on the financial inclusion of underserved people in the deep interiors of rural areas. India using digital processes and state-of-the-art technology. Capital Trust serves more than 1,02,739 customers in 94 districts through 315 branches in 10 northern states and Eastern India. The company prides itself as India’s first ‘Rural Doorstep-Fintech’ company. For more information, visit capitaltrust.in.
SOURCE Capital Trust Limited
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