Capital float to give small loans to vegetable and kirana store vendors

The vegetable seller and the kirana stores will no longer have to depend on the local moneylender for the daily credit requirement as digit non banking finance company Capital Float is all set to give small loans to these vendors to manage their daily business.

Having partnered with wallet players such as Paytm and Payworld to track the payment history of these merchants, Capital Float will give them short-tenure loans for their business operations.

To acquire merchants, the lender has tied up with wholesale players like Amazon Business and Metro Cash and Carry from where a large number of merchants source their products.

Gaurav Hinduja, cofounder of Capital Float said “With the availability of data from these partner organisations and by quickly analysing it through our technology platform, we can decide a credit amount for these borrowers and actually disburse it within 5 to 10 minutes. Since most of these players do not have a CIBIL score, we have to rely on alternate data points for deciding their credit worthiness. Having disbursed around 2,000 loans in September across 20 to 25 cities, the lending startup plans to expand operations to 50 top cities of India and add 5,000 borrowers per month. Capital Float is targeting a loan book of Rs 500 crore in the next 12-18 months from the segment”.

Besides tracking payment history and business records through the partners, Capital Float subjects its borrowers to a psychometric test, which helps it assess their repayment tendencies. Further, with the help of the Aadhaar database, know your customer (KYC) requirements are also met very fast.