Priyanka Sahay
Moneycontrol
Franklin Templeton-backed loan aggregation platform Deal4loans is all set to rebrand and expand its product portfolio to insurance and mutual funds in next three months, according to a top executive of the company.
Founded in 2008, the company has till now aggregated and facilitated the sale of loan products and credit offerings from banks and financial institutions. So far, it has helped in disbursing loans worth Rs 13,500 crore and targets an annualised run rate of Rs 6,500 crore for the financial year end.
The move is likely to take place close to a year after Deal4loans raised USD 15 million from global investment management firm Franklin Templeton. It will allow the company expand its revenue and reach out to larger target audience.
So far mortgages, personal loans and car loans are among the top categories on its platform. The average ticket size of loans for mortgages it is about Rs 27 lakh while for personal loans it is Rs 3 lakhs.
"We realised that we were actually helping our customers on the loans side. But our customers were coming back to us and saying that what you have done on the loan, can you do that for us on investment, can you plan for our child. So when customers started asking you for more, is when the whole idea came about. We have to service each and every need of our customers," said Puru Vashishta, director, Deal4Loans.
Deal4loans which has so far worked with over 40 banks and financial institutions has now tied up with 20 asset management companies for investment products.
"We do a lot of credit analysis for people. There are people who actually have some money in their account but they do not deposit that money or make investment. They think, keeping money in account is emergency fund. They don't realise that emergency fund cannot be more than six times your salary. So they do not use that money. But they do not realise that at the time of pain point, they will start spending that money and they will not be left with money and then they will take more credit. So the intention may be right to start with but your ability to pay will keep dying out," said Rishi Mehra, co-founder, Deal4loans adding that knowing the credit history of a customer will help Deal4loans offer apt investment products to customers.
The company earns by charging a commission from the banks and financial institutions which ranges between 0.8-3 percent for every successful loan disbursal. It will stick to a similar model for investment product.
The rebranding will be followed by a multi-channel advertising campaign. The company plans to spend upwards of USD 4 million for the same.
Its competitor Paisabazaar.com which too was a credit disbursement focused platform in July expanded its product portfolio to personal investment category. Deal4loans also competes with financial services marketplace BankBazaar.com, which ventured into international market earlier this year.priyanka.sahay@network18online.com
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