Instamojo is now approving small ticket loans on WhatsApp and it has become an instant hit
- Fintech platform Instamojo has taken its ‘sachet loans’ to WhatsApp.
- The pilot run for sachet loans over WhatsApp has already seen 140 merchants apply for over 290 loans worth ₹19 lakhs.
- During lockdown, Instamojo has already seen a 25% increase in the number of daily merchant sign-ups.
The pilot run for sachet loans over WhatsApp has already seen 140 merchants apply for over 290 loans worth ₹19 lakhs. The interest rate ranges between 0.25-1%. For the next day payout it’s 0.25%, for the same day payout it’s 0.5-0.75% while for instant payout it is 1%. The borrowers have to repay the loan in three days.
“The process is pretty simple. Merchants get a WhatsApp notification which tells them that they are eligible for a certain amount of loan and asks them if they are interested. Once they respond to it, we send them more details. Once they confirm, the money gets disbursed immediately. It's a loan disbursed through a series of messages on WhatsApp,” Akash Gehani, co-founder of Instamojo told Business Insider.
Analysts too are betting on this move. “While there are working capital issues quite prevalent amongst small and medium enterprises during this time, a small ticket loan clubbed with on-platform-sales mapping and backed by transaction history-based eligibility criteria is likely to be an instant hit,” said an internet weekly report by JM Financials.
During lockdown, Instamojo has already seen a 25% increase in the number of daily merchant sign-ups. But Gehani also said that they are a bit conservative about who gets loans. Once a merchant signs up, their algorithm rejects or denies their loan plea.
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