Digital lending platform and RBI registered NBFC Prest Loans (www.PrestLoans.com), has secured debt funding of about USD 2.5 lakh (appr. Rs. 16.5 crore) from multiple lenders.The lenders include AU Small Finance Bank, INCRED, MAS Finance, Northern Arc Capital (earlier IFMR) and other who have been with the company from very early stage itself. The company has seen 10X growth in lending on YoY basis and is on aggressive expansion plan. The promoters have also recently infused another about USD100K (Rs. 65 lakh) in equity to further strengthen the technology platform and meet the growing demand of credit.
|Mr. Ashok Mittal, Founder and CEO of Prest Loans|
On this development, Mr. Ashok Mittal, Founder CEO of Prest Loans said, The funding is an indication of confidence shown by lenders in our business. We got excellent support from various lenders within the first year of our operations and could raise debt largely due to strength of the business model, processes and technology being used. Some of our lenders have provided multiple tranches of credit based on our growth and track record. We have been growing our portfolio steadily month on month basis and have planned for robust growth in the portfolio in next few years.
We believe in touch and tech philosophy, so to provide a unique user experience to our borrowers we have kept most of the things very simple and easy for them to understand. Micro and Small business find it difficult to get credit due to lack of financial data while our tech driven underwriting model assesses the credit based on alternate data collected by us. We understand the issued faced by small time traders who don;t have perfect financial statements but have good cash flow, added Mr. Mittal.
The company started its operations from Feb 2017 and has processed more than 3000 loan applications. It has disbursed loans to about 400 small business and MSME units from various sectors like auto ancillary, retailers, textiles, education training, food processing etc. representing tier l and ll cities. With an average ticket size of Rs. 5lakh the company has disbursed new loans worth Rs. 15 cr in last financial year. Most of the borrowers are small time traders and manufacturers who don;t have access to formal credit from banks. The company has planned for aggressive expansion with the help of strengthening its tech driver lending platform.
Prest Loans: Loan to Business Women
About Prest Loans
We are a new age FinTech NBFC, providing all kind of loans to support and encourage the businesses; these loans may be in form of Small or medium businesses, MSME units term loans, E-commerce vendors, Inventory funding etc. Prest Loans is a trade name of Lord Krishna Financial Services Ltd. a Non Banking Finance Company registered with RBI. The company had earlier raised capital in September 2017 from angel investors.
About Ashok Mittal
Mr. Ashok Mittal, a seasoned professional and CEO, Prest Loans have a rich experience of more than 20 years in Banking and Financial services. Mr. Ashok worked with some of the biggest corporate in the capacity of CEO and senior manager team and took the companies to new heights. He was the CEO of an Agri Financing NBFC; prior to which he was heading commodities and currencies business at Emkay Commotrade Ltd. as CEO and Karvy Comtrade Ltd. as Country Head. He has also had the experience of working with Union Bank of India and UCO Bank. He has conducted more than 200 public seminars on various financial services segments and has been an eminent speaker in many National Seminars of various organizations like PHD Chamber of commerce, FICCI, Assocham, Exchanges and ICFAI to name a few. He has been awarded by eminent personalities like Mr. Pranab Mukherjee, Mr. Narendra Modi and Mr. Amit Shah for Best Market Analyst Awards.
This article provided by NewsEdge.