How easy the entrepreneurs are making the life of the Indian customers, by taking some business lessons from the international market and merging the exact requirement of the country’s population.
Droom—an online marketplace for used vehicles has launched India’s only loan marketplace for used vehicles, named as Droom Credit. The company has partnered with many non-banking financial companies and finance firms. It has also tied up with various lenders such as HDFC Bank, Kotak Prime, Faircent, and Tata Capital.
The creditworthiness of the applicants will be analyzed by Droom Technology Pvt. Ltd. through its credit risk engine. The loan approval procedure will be processed within 30 seconds based on the credit score validation, Aadhar details, PAN verification, and other credit evaluation platforms.
Founder and CEO of Droom, Sandeep Aggarwal, said, “It is very hectic to get an auto loan for used cars in India due to complicated paperwork, loan rejection, and unaffordable credit policies.
The CEO didn’t disclose the exact figure spent on the product development but he said, “there have been some million dollars spent”.
Droom has invested a lot on the technology behind the product and its development since last 10 months. Product managers, a team of engineers, and business analysts are curiously working on this platform. The integration of all the credit-worthy documents with finance providers and CIBIL score demands a lot of money and hard work as well as a well-integrated backend for operations.
The marketing expenditure number may reach up to 15 Crore, which will be pushed during Diwali in the present year, claims the CEO.
Aggarwal also revealed about its revenue generation models, which will be bifurcated in multiple ways.
The applicant will have to select the take rates that will be dependent on the lenders, borrower profile, and commission structures. The company will also have the option to choose the NBFCs and Banks for the total liability or play the role of an aggregator. From which Droom will be getting 1–4% commission on the total loan amount.
The company will charge Rs 999 from borrowers that include Rs 299 as Cibil score checking fees and rest of the amount will be charged if the borrower makes his or her move toward next step with his loan approval.
Aggarwal said, “We will be expanding in other categories in coming future”.