V.N. Finance, the tech-enabled NBFC, launched their Business App ‘VNFinance’ (on Android available on Google PlayStore) to automate the process of helping customers to get business loans. Customers can apply from anywhere and get the lightning-quick decision. V. N. Finance addresses the financial services needs of small businessmen/ women, self-employed professionals, MSMEs, shopkeepers etc., and with this launch, their process for giving loans is going to become substantially online and digital. Those people, who need unsecured loans and have no security or no existing assets, can directly (or through intermediaries) approach V. N. Finance and share their creditworthiness and repayment capacity. The Company gives Business, Loan Against Property ( LAP) and Gold Loans .
Mr. Mohit Kakkad, Managing Director, V. N. Finance, says, “Our focus is to provide comfort, respect and quick decision making to customers, who need loans to realise their dreams. Our Business App helps provide the best-possible customer experience and lightning fast decision making in loan appraisal and disbursal processes. We are extremely fast in credit assessment and disbursal. More than 90% cases take less than 24 hours for final decision and disbursement. Our approach is to deploy 24×7 service and disburse loans within a day with the least number of documents and hassle-free interaction using technology.”
V.N. Finance is deploying cutting-edge technology and digital solutions to different customer segments. Mohit underlines: “We leverage best-in-class technology based on web and mobile technologies and analytics to develop proprietary credit evaluation algorithms, which enable us to serve our target segment quickly with the right balance of managing risks. We have created benchmarks for the processes, which are monitored religiously and constantly upgraded to the next level. We have made our processes so customer friendly that even the uneducated customers can navigate through our system with utmost ease.”
In addition to sourcing and assessing loan applications, V. N. Finance is using technology to assess creditworthiness and loan limits for the customers based on machine learning algorithms. Mohit indicates: “Since the target segments are not necessarily highly literate and educated in technology, we are using technology to help them and the financial intermediaries in the easiest of ways. We have planned to invest at least 5-10% of our revenue in developing and deploying technology to scale our business.”
V.N. Finance has built an ML based supervised learning algorithm to automate loan application processes and is currently testing it. Mohit observes: “The algorithms will undergo constant tweak with more and more data as we grow.”
V.N. Finance has been using cutting edge technology (process automation and integrating workflows) to service customers and utilize its branches more efficiently. Mohit indicates: “Our strategy is based on hybrid model that is to use technology along with physical presence. In our target segment it will act as force multiplier. We are getting good response as we save substantial time in pre-approval activity using technology. With the VNFinance App customers can get reminded about the outstanding payments and pay online with various payment options as well. The result is that our branches can handle more customers and customers are happier as they need to spend far lesser time than conventional processes.”
V.N. Finance has grown notably (monthly business has doubled within a month of opening branch in October 2020) in the last 1.5 years and now it is high time to expand its network to get closer to its customers more widely. Mohit says: “We plan to expand aggressively in Mumbai MMR region and Maharashtra state and gradually across India. Our energies are currently focused on growing our presence with 8-10 branches in next 12-18 months within Mumbai & Maharashtra.” Physical presence is still needed to provide comfort to customers in India.
V.N. Finance recently announced Gold Loan to help people unlock their dreams instantly from anywhere anytime. It helps them to get the best and highest (possible) loan to value (LTV) ratio on a 24X7 basis and to sail through their urgent financial needs smoothly within a short period of time. It also offers secured loans such as Loan Against Property (LAP) and Loans against Inventories. It is also taking its social responsibility seriously with an initiative to help NGOs and self-help groups in assisting migrant labourers. It recognised that every customer’s needs are different — so ‘one-size fits all’ approach doesn’t apply.