Fibe (EarlySalary): Revolutionising Digital Lending With Instant And Flexible Unsecured Loans

Fibe (EarlySalary): Unsecured Loans Provider

EarlySalary Services Private Limited (ESPL), a subsidiary of Social Worth Technologies Private Limited (SWTPL), is a Reserve Bank of India (RBI)-registered Non-Banking Financial Company (NBFC). It focuses on providing unsecured loans to salaried individuals through its user-friendly digital platform, the EarlySalary app. The company offers a range of short-term EMI loans with tenures of 3 to 6 months and long-term loans of 9 to 24 months, with loan amounts of up to INR 5,00,000. Since its inception, ESPL has become a trusted name in digital lending, leveraging technology to simplify and accelerate loan disbursements for its customers.

Since FY18, EarlySalary has cumulatively disbursed loans amounting to INR 13,357.52 crore and reported an outstanding portfolio of INR 2,336.92 crore as of June 30, 2023¹. The company operates both its own loan book and a managed book under banking correspondence arrangements. With strong leadership and cutting-edge technology, EarlySalary has positioned itself as one of India’s fastest-growing NBFCs, reshaping the digital lending landscape by providing convenient and efficient financial solutions to salaried professionals.

Board Of Directors Of EarlySalary

The Board of Directors at Fibe comprises a group of seasoned professionals with extensive experience across various sectors including finance, technology, and investment. This diverse team brings expertise from leading organisations such as Bajaj Allianz, Future Group, TPG Growth, Chiratae Ventures, and Piramal Capital. Their combined knowledge and leadership are instrumental in driving Fibe's mission to provide accessible financial solutions across India.

Here is the list of the Board of Directors of EarlySalary Services Private Limited (now known as Fibe):

• Mr. Ashish Goyal: Co-founder and Whole-time Director
• Mr. Akshay Mehrotra: Co-founder and Director
• Mrs. Subhasri Sriram: Independent Director
• Mr. Satish Mehta: Additional Non-Executive Independent Director
• Mr. Simit Batra: Director at TPG Growth and Rise
• Mrs. Shweta Bhatia: Director at Eight Roads Ventures
• Mr. Jairam Sridharan: Managing Director of Piramal Capital & Housing Finance Limited
• Mr. Sudhir Sethi: Founder & Chairman of Chiratae Ventures India Advisors
• Mr. Hemant Kaul: Non-Executive Chairman of TCI Finance Ltd.
• Mr. Frederic Jean Emmanuel Azemard: Managing Partner at TR Capital

Source: EarlySalary²

Products Offered By EarlySalary

Here are the descriptions and features of the products offered by Fibe (formerly EarlySalary Services Private Limited):

1. Instant Cash Loan

Fibe offers an Instant Cash Loan to help users access funds quickly for urgent expenses. The loan amounts range from INR 8,000 to INR 1,00,000, and customers can choose flexible repayment terms from 7 to 30 days. The application process is simple and can be completed via the Fibe app. With minimal documentation and competitive interest rates, this product is ideal for meeting short-term financial needs.

2. Personal Loan

Fibe’s Personal Loan is designed for salaried professionals who need funds for personal expenses, such as weddings, vacations, or home renovations. With loan amounts up to INR 5,00,000 and repayment terms ranging from 3 to 36 months, this product offers a flexible solution to personal financial goals. The loan is processed quickly, and the funds are disbursed shortly after approval at attractive interest rates.

3. Loan Against Mutual Funds

For those looking to leverage their investments, Fibe provides a Loan Against Mutual Funds. By pledging mutual fund units as collateral, users can avail themselves of a loan amount up to 50% of the current value of the mutual funds. The loan offers flexible repayment options, and the application process is simple, requiring minimal documentation. Competitive interest rates make this an appealing option for customers with existing mutual fund investments.

4. Fibe Axis Bank Credit Card

Fibe has partnered with Axis Bank to offer a co-branded credit card that comes with exclusive benefits, including discounts, rewards points on every transaction, and access to premium services such as lounge access. The card has zero annual fees for the first year, making it a great option for those looking for a credit card with attractive perks and a minimal upfront cost.

5. Buy Now Pay Later (BNPL)

Fibe’s Buy Now Pay Later (BNPL) service enables customers to make purchases and pay in installments over time, with an interest-free repayment period. Users can access flexible repayment options, and the approval process is quick and simple. This service is available at a wide range of partner merchants, providing customers with a convenient and cost-effective way to manage their purchases.

6. Loan for Education

Fibe’s Loan for Education is designed to help individuals finance their higher education expenses. With loan amounts of up to INR 10,00,000, this product offers flexible repayment terms of up to 5 years. The loan comes with competitive interest rates and a quick processing and disbursal timeline, providing students with the financial support they need to pursue their educational goals without delay.

7. Medical Loan

Fibe’s Medical Loan helps users manage unexpected medical expenses, offering loan amounts up to INR 5,00,000. This product provides flexible repayment options and ensures quick approval and disbursal of funds to address medical emergencies. No collateral is required, making it accessible to a broad range of individuals who may need financial support for medical treatment.

8. Salary Advance

Fibe’s Salary Advance service allows employees to access a portion of their salary before payday. This product offers quick access to funds, with flexible repayment options. There are no interest charges if the advance is repaid within the agreed period, making it a cost-effective solution for employees who need funds before their salary is credited. The process is simple and can be completed through the Fibe app.

Each of these products is designed to provide users with easy access to financial resources, ensuring they have the support they need for both planned and unexpected expenses.

Technology And Innovation At EarlySalary

Fibe, formerly known as EarlySalary, is at the forefront of integrating technology and innovation to offer seamless financial solutions to its users. By leveraging cutting-edge technology, Fibe ensures a quick, transparent, and efficient loan processing experience. The company's commitment to innovation is evident in the following key areas:

1. Fibe App
   The Fibe app is the cornerstone of the company’s digital transformation. It provides a user-friendly interface that allows customers to apply for loans, track repayments, and manage their financial products from their smartphones. The app is designed for a seamless and efficient user experience, with features such as instant loan approval, real-time updates, and easy navigation for a smooth borrowing journey. It simplifies the application process by requiring minimal documentation and ensures quick disbursal of funds.
2. AI-Driven Credit Assessment
   Fibe uses artificial intelligence (AI) and machine learning algorithms to assess loan eligibility. By analysing a user’s financial behaviour, transaction history, and other data points, the AI system helps make faster, more accurate credit decisions. This reduces human intervention and speeds up loan approval, ensuring that customers receive funds as quickly as possible.
3. Paperless Loan Processing
   Fibe eliminates the need for traditional paperwork by adopting a fully digital loan application process. Users can complete their entire application on the Fibe app, upload necessary documents through their phone’s camera, and receive instant approval and disbursal. This paperless approach significantly reduces processing time and increases efficiency, making it more convenient for users to access financial services.
4. Cloud-Based Infrastructure
   Fibe’s cloud-based infrastructure supports scalable and secure loan processing. The use of cloud technology ensures that customer data is safely stored and easily accessible for processing, while also supporting the company's growing customer base. The cloud infrastructure allows Fibe to scale its operations quickly and reliably, meeting the increasing demand for its products.
5. Data Security And Privacy
   Fibe places a strong emphasis on user data security and privacy. The platform utilises the latest encryption technologies to ensure that sensitive customer information is protected. By adhering to stringent data security protocols, Fibe ensures that user data remains confidential and is handled in compliance with privacy regulations.
6. Instant Loan Disbursal
   Leveraging innovative technology, Fibe is able to offer instant loan disbursal, making funds available to customers in real-time. Once a loan is approved, the funds are transferred directly to the user’s bank account or e-wallet, ensuring immediate access for those in urgent need of financial support.
7. Personalised Financial Products
   Using advanced analytics, Fibe provides personalised loan offerings based on individual financial profiles. By continuously analysing customer data, Fibe can offer tailored solutions that meet specific needs, whether it’s a personal loan, education loan, or salary advance. This level of personalisation enhances customer satisfaction and trust in the platform.

Source: CARE Credit Rating Report¹

Through the integration of technology and innovation, Fibe is transforming the landscape of digital lending, making it more accessible, efficient, and secure for its customers. The company’s focus on leveraging AI, data analytics, and cloud technology continues to drive its mission of providing quick and easy financial solutions for millions of users across India.

Key Strengths Of EarlySalary

1. Strong Financial Backing for Growth: The company has raised around INR 985.5 Cr in funding from various investors, including private equity firms, venture capitalists, and promoters. In 2023, it raised INR 775 Cr through the issuance of preference shares, showing strong investor confidence in its future.
2. Tech-Driven and Scalable Business Model: The company operates digitally and offers unsecured personal loans through its Fibe app, working closely with NBFCs. Its technology helps speed up loan processing and credit assessments.
3. Healthy Liquidity Position: The company has a solid cash reserve, with INR 262.3 Cr in liquid assets as of June 2023. This is more than enough to cover its debt obligations of INR 158.5 Cr for the next three months, even if no new loans are collected or disbursed.
4. Diverse Borrowing Sources: The company has a mix of funding from 23 different institutions, including 15 NBFCs and several banks. As of June 2023, 52% of its borrowings came from these sources, showing its ability to tap into various funding channels.
5. Key Financial Guidelines: The company adheres to strict financial standards, including maintaining a capital adequacy ratio of at least 18% and ensuring the debt-to-equity ratio remains below 5 times. It also aims to keep its portfolio at risk and non-performing asset levels low.

These simplified points reflect the company's strong financial position, its tech-driven approach, and its ability to manage liquidity and funding sources effectively.

Source: Audited financial statements of FY’23 and credit rating reports of EarlySalary Services Private Limites and management information³.

Financial Snapshot Of EarlySalary

To arrange the capital, EarlySalary also offers corporate bonds. These bonds from the company are secured and are rated by credit rating agencies. On Grip Invest, investors invested in BBB+ rated bonds of the company that offered fixed returns of up to 13.1%. To invest in similar, rated, regulated and secured corporate bonds sign-up on Grip Invest today and start earning fixed returns:

References:

1. CARE Credit Rating Report, accessed from: https://www.careratings.com/upload/CompanyFiles/PR/202404120449_Earlysalary_Services_Private_Limited.pdf
2. EarlySalary, accessed from: https://www.earlysalary.in/regulatory-disclosures/corporate-governance/directors/
3. EarlySalary Annual Result FY 2023-2024, accessed from: https://esstaticcontent.earlysalary.com/regulatory-disclosures/financials/annual-disclosures/1.%20ESPL_BM%20Outcome%20Audited%20Results_29.05.2024%20(1).pdf

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