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IIFR will use air conditioning aggregator for SME loans

Mumbai: IIFL Finance, backed by Fairfax, said it was among the first to launch account aggregator-based digital loans that will allow it to reach millions of new customers on credit. IIFL Finance has Rs 43,160 crore in loan assets under management as of June 30, 2021 with around 93% of the book in retail, including low cost loans. The RBI-designed account aggregator platform allows clients to consent to lender software to access their bank details. This makes it possible to extend the loans to those who have no credit score.
IIFL Finance aims to use the account aggregator to better underwrite small businesses. The private lender is focusing on digital underwriting unsecured loans up to 10 lakh for MSMEs. Customers can avail instant loans within minutes through the MyMoney app operated by IIFL Finance. IIFR Finance President Nirmal Jain said, “We believe the account aggregator will be a game-changer in the coming days. Many borrowers are denied access to credit due to the unavailability of financial data. Creating an account aggregator will solve this.
He added that currently around 8% of the IIFR’s platform users are able to provide digital financial data to process the request. “We believe the account aggregator will help us bridge the data gap and make 70-80% of businesses eligible to apply for digital credit,” he added.

Tags : credit score
Cory E. Barnes

The author Cory E. Barnes

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