When people suddenly need money, they can ask a close friend or relative for it. The other option is to search for it from a pawnshop. Today, as the world goes digital, mobile and web, the CashBean platform addresses the sudden financial needs of these people.
All a person needs after downloading the app is an Aadhar card, a permanent account number (PAN) and a bank account, therefore, there is minimal manual intervention. After OTP verification, Aadhar and PAN details are then uploaded to complete the process.
Within 10 to 15 minutes, if all is well, the user’s photo matches and their score is good, the money is deposited into their account. “We have a ceiling of Rs 60,000 in a single disbursement on the loans that we offer. However, the major part of the loans that we grant are in the region of Rs 6,000 to 7,000″, explains Raghuvir Gakhar, financial director by CashBean.
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The minimum monthly salary required to have access to CashBean funds is Rs 25,000. The microcredit application meets the needs of employees and self-employed workers in level I and II cities.
CashBean is a trademark used by PC Financial Services, a wholly-owned subsidiary of New York-listed browser company Opera Limited in India. It is also operational in Indonesia, Philippines, Kenya and Mexico under different names.
The purely digital NBFC started operations in India in January 2019. “In India, we did a really good job last year serving millions of people who don’t have access to bank credit and people looking for research. short-term loans on a land basis, ”says Gakhar.
But the tipping point is the interest charged. CashBean charges up to 33 percent. However, as Gakhar points out, it is not very expensive for most people since the loan must be repaid within 15 days to two months. Gakhar points out that while most are repeat customers, the company also attracts many new users. On a loan of Rs 2,000, the repayment is around Rs 2,200. People can handle that extra Rs 200, he adds.
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“About 30-40% are dedicated customers, but new customers keep coming in. The interest rate we charge can reach 33%. The bulk of CashBean’s business comes from Level II towns in Gujarat, South Africa. Maharashtra, UP, MP, Bihar, and Karnataka, ”says Gakhar.
“We are exploiting the market by advertising on Facebook and earlier on TikTok. We had a good number of followers on Twitter. We use social media advertising extensively,” he added.
CashBean has made over 10 million downloads, mostly through word of mouth. Almost 50-60% of the app’s activity comes from existing customers.
“Most customers pay on time. But there are a few who don’t. We charge a penalty. There was a total of about 5,000 employees before COVID-19, but we have reduced. Now As the repayment moratorium is over, we plan to step up operations, ”Gakhar adds.