Inditrade to script JV with Robocash for payday loans

KOLKATA: Inditrade Capital is scripting a joint venture with Robocash, a global leader in payday loans, to venture into this online quick-loan segment.

Payday loans are short term unsecured loans in small ticket size. Inditrade will be looking to provide loans ranging from Rs 10000 to Rs 50000 to small borrowers through this proposed venture, two people familiar with the development said.

The joint venture company — Inditrade-Robocash — will be carved out of an existing Inditrade group company where Robocash will now hold 24.9% to begin with.

The deal will be announced in a day or two, the people cited above said. The company would simultaneously seek Reserve Bank of India‘s approval for Robocash to raise its holding in the JV to 49%.

Inditrade group chairman Sudip Bandyopadhyay declined to comment on the development.

The JV company will begin with Rs 20 crore paid-up equity and both partners will raise their investment subsequently.

The overseas partner will bring in technology and the online platform to the table for the venture. “We wanted the right AI (artificial intelligence) engine for this business,” a senior official with Inditrade said on the condition of anonymity.

Robocash at present operates in five countries, including Russia, Kazakhstan, Philippines, Indonesia and Vietnam.

The JV will offer payday loans at 18% or above rates depending on the borrowers’ risk profile, and such loans would typically be released within an hour.

Inditrade has been into small lending through subsidiaries in micro finance, agri commodity finance, and SME/ MSME finance business. Payday loans will be another area under the small loan segment.

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Its micro finance subsidiary lends Rs 30,000 on an average to women entrepreneurs in joint liability group format. Payday loans, on the other hand, would be offered to individual borrowers online. The group is also looking to get into affordable housing segment.

Its share price fell 4.93% to Rs 43.35 on the BSE while Sensex rose 0.13% to 36241 points on Monday.


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