Know More About Credit Card

A cashless economy, the rise of digital money yet an increasing demand for credit. All of this has led to the rise of the digital credit start-ups that let you buy now but pay later. With the promises of letting you have a hassle-free transaction and the ability to buy what you want, regardless of the fact that you might not have cash on you; these start-ups are targeting the consumer segment of India that does not have access to a credit card.

One of the biggest problems while getting a loan is the amount of paperwork involved in it and the number of times you have to visit the bank and even then, you might end up not securing the loan. Doing away with all the hassles, these start-ups base your credit worthiness through digital checkpoints. “It’s a longish process at the bank, which is why the credit card penetration is so low in the country. We have a propitiatory algorithm that assesses credit worthiness using alternate data. All of this is done in real time with minimum or no customer involvement. It’s a less pervasive model,” said Akshat Saxena, co-founder of ePayLater.

 Enabling Financial Inclusion

The startup ePayLater recently tied up with IRCTC giving users the option to buy a train ticket immediately without having to worry about whether they have enough balance in their account at the said moment to pay for it. “It’s a fairly innovative way of making payments. The user can just sign up once and then we access their credit worthiness in real time and let them buy the ticket. This actually enables financial inclusion.

Tapping the 100 million people segment

While there are a large number of people who are denied loans or don’t have access to credit cards, there’s another segment that almost always needs instant cash but has no access – college students. Targeting the age group of 18-26, Slicepay makes way for micro credit use cases. “There are over 100 million people between the age group of 18-26 who don’t have credit cards. These are mainly students who need small ticket loans and banks don’t have the cost structure to include the same. Taking the whole process digital, we offer them the ability to buy a smartphone or laptop with convenience. The average credit loan is 15,000,” said Rajan Bajaj, co-founder of Slicepay.

Are we headed towards a debt crisis?

Considering there are also people who could make use of this facility for the wrong reasons, will it lead to a debt crisis? “First, the credit taken by these people are for small numbers. Secondly, the analysis we do is pretty secure. We are prudent in a way that we are very cautious of lending. Let’s say we have 100 customers per month, we refuse 40 of them because of their low evaluation scores. We are also educating them about cibil scores. We have campus ambassadors who can also do physical verification The AI and ML-based process raises red flags if there is an error and the person is denied the loan automatically, leaving no room for faults,” said Bajaj. At Slicepay, they do 1500 loans per day.

Saxena from epaylater agrees to say, “A credit card is an unsecured product because there’s no collateral involved. A house loan or car loan is still secure because there’s an asset involved. However, ours can be the most secure product because of the algorithmic analysis we do for the credit assessment. Everyone is on social media now and the assessment done through the digital data is always accurate. The number of people we give loans to per month is definitely a double digit percentage.”

Some Investments in First Half of 2017

The year 2017 has already seen many fintech achievements that will go a long way in charting a history of their own in future. From PaytM, breaking records as one of the highly funded companies of Asia to it opening a payments bank, the fintech sector has seen a lot of money being pumped into it.

The Investment That Made the World Take Notice

 Of course we are talking about PaytM here. With an investment of $1.4billion from Japanese Conglomerate Softbank, the payments wallet and marketplace that recently turned into a payments bank, had fintech enthusiasts from all around the world sit up and pay attention to the Indian fintech sector. The company is setting a target of creating over 500 million users.

Another Digital Wallet Takes the Cake

Not too far behind is MobiKwik with its investment of $928 million. The digital wallet company raised the series C round of funding from its existing investors Cisco Investments India Ltd and the Bennett Coleman & Co Ltd. According to reports, MobiKwik will use the money from this funding round to innovate and develop new products and expand its team further to increase its user base.

InsurTech in the Race

The start-up that intends to change the insurance landscape of India has recently raised $30 million. Acko has raised the round from various investors, including Narayan Murthy’s Catamaran Ventures, SAIF Partners, Accel Partners and also Kris Gopalakrishnan.  Interestingly, Acko Founder Varun Dua was also one of the co-founders of Coverfox, an online insurance distribution platform. Many of the investors of Coverfox have placed their bets on him again.

Banks on the Lookout

The alternative banking channel Fino PayTech Ltd raised $22 million from ICICI Prudential and ICICI Lombard by offering them a 12 per cent stake. The business and banking technology platform offers its customers financial services. Having been around for over 10 years now, they boast of over 28 million customers across 499 districts, covering almost all states. Fino PayTech is also looking at starting a payments bank.

Rising SME Loans

With demonetization, the alternative lending platforms got a great boost. Lending in the SME sector got an all-time high, and LendingKart which focuses on the same, saw its curve on the graph rise upwards.  LendingKart hit headlines recently as they received $7.8million as debt funding from YES Bank. The company will now use these funds to expand to Tier III cities

Some Money Habits That Separate Building Wealth From Just Making a Living

When it comes to getting rich, many of us assume it means getting an upscale job with a hefty paycheck. We daydream about how we’ll drive a cool car or treat ourselves to fancy dinners out. After all, the more money you earn, the wealthier you are, and then you can do whatever you want, right?

There are a handful of small but powerful things wealthy people do that set them apart from those who are struggling financially. Start cultivating these habits and you’ll get a sense of what real financial success and independence feel like, as well as what it’s like to make a difference.


1. Create multiple streams of income.

It’s difficult to become financially independent on one income. If you lose your job you’ll be frantically looking for work while dipping heavily into savings to stay afloat — or, worse yet, you’ll be going into debt to pay your bills.

Wealthy people focus on cultivating multiple streams of income so they’ll always have something to fall back on during lean times. During boom times, your income will balloon to pad your savings and fund your investments.

You can build passive income, such as from rental properties, stock dividends or interest from a high-yield bank account. A side hustle is a great way to boost your income while developing a passion or a hobby.

A side hustle could be a business you start on the side, freelancing in an area of expertise or marketing your skills. Can you teach yoga? Design websites? You can work a part-time job during off hours, or even rent out a room in your home.

The best kind of side hustle is something you enjoy doing, and it’s even better if you can create synergy between your different income threads, so they feed into your overarching goals and dreams. If you’re able to tap into an area you are passionate about, you’ll be determined to persist until you’re successful.

Related: 50 Jobs, Gigs and Side Hustles You Can Do From Home

2. Learn to live on less than you make.

Living beneath your means is the key to creating and maintaining wealth, not to mention avoiding debt. Millionaires know spending less than you earn creates opportunity; you can invest that money, save it or donate it to a cause or charity you care about. Ideally, you can do all three.

Jim Rohn, entrepreneur, author and motivational speaker, uses the 70/30 rule as a blueprint for how much to spend, save, invest and donate. For most people, the difficulty is learning to live on 70 percent of their income after taxes, including spending for all necessities and luxuries. The remaining 30 percent is then broken into 10 percent allocations for investments, savings and charity.

Living on less than you make requires you to get your spending under control and come up with a budget that you stick to. You’ll need to learn to be more frugal and to really make your money stretch. It may mean that you drive a used economy car, eat at home more often or ditch extravagant purchases.

It definitely means that you should stop comparing yourself to others. According to Rohn, “Poor people spend their money and save what’s left. Rich people save their money and spend what’s left.”

When you spend, think about whether this something you really need, or something you just really want.

3. Make your money work for you.

The wealthy invest in themselves. They know the key to making their money work for them consistently over the long haul is creating an investment plan to create wealth. The plan should include regular payments into a mutual fund, a trading account and retirement accounts.

Accruing wealth also requires making capital investments. This is the money you’ll invest in creating an enterprise, such as developing a business, manufacturing a product, marketing and selling your services or investing in other ventures.

This will require you to take calculated risks while taking into account your long-term financial security. Walking this line require financial savvy. Educate yourself on financial matters. Understand the ins and outs of your investment plan and make adjustments as needed.

In addition to your investment plan, you should be tucking away at least 10 percent of your paycheck into “rainy day” savings. It’s easiest if you have it automatically deducted from your paycheck. This money is for unexpected expenses and to get you through tough times.

Savings protect your investments. It will keep you from going into debt or needing to pull money from your investments, which in turn could cripple your multiple income sources.

Related: Lifestyles of the Rich and Frugal: 7 Thrifty Millionaires and Billionaires

4. Give back.

It may seem counterintuitive to give generously of your time and money, but this is also an important investment. Giving to others and being of service to those who need it most helps you connect with your community and be a part of something bigger than yourself: the greater good.

This is about growing wealth not just in your bank accounts, but in your whole community, which benefits everyone. When you volunteer your time or make donations to causes or issues that your care deeply about, it gives you a sense of joy and purpose.

The idea is to not just be a go-getter, but a go-giver — someone who is focused on others more than themselves. Yes, it’s important to stay focused on your goals and be passionate about your dreams. But finding a way to also add value to the lives of other people will benefit you in the long run as well.

Truly wealthy people, the ones who impact society and change our world views, understand that the more you give, the more those good feelings and vibes come back to you