Pune-based credit start-up EarlySalary has signed an exclusive pact with Amazon to enable salaried employees to shop and pay later at no extra charge, said a top official.
“‘Pay Later’ enables young employees to shop now and pay after a month without any interest or charge,” said Akshay Mehrotra, CEO, EarlySalary.com. “The employees can also transfer the approved credit limit to Amazon to make payment.”
“Transactions ranging from ₹3,000 to ₹1 lakh can be done through this route,” he said.
“However, an employee can buy products only up to 50% of salary. In the last 18 days, about 145 transactions were carried out through the modern retail. We expect this number to touch 1,000 by the month end. If this proves successful, we might tie up with 10 more online retailers by Diwali,” he added.
EarlySalary, a mobile-app based lending platform, was started with the aim of supporting young professionals (21-28 years of age) to overcome their month-end financial needs. Currently, EarlySalary is present in eight cities and six more cities will be added by end of the quarter.
“To avail loan, one must have minimum take home salary of ₹20,000. About 50% of the salary ranging from ₹8,000 to ₹1 lakh is given as advance at reduced interest rate of 2% per month ranging from 7 days to 30 days. We rely on Facebook, Credit bureau data and bank statement. The approvals are given within 10 minutes based on machine algorithm and there are no human interferences,” he said.
Last month, the company disbursed 5,200 loans with an average ticket size of ₹15,000 each. In the last 10 days, the company has disbursed 2,500 loans against its target of 10,000 with an average ticket size of ₹18,000 each.
“Our aim is to have loan book ₹100 crore by March 2018 and grow it by 10 times by March 2019,” he said.