MobiKwik has launched Boost, an instant loan disbursal system which lends upto Rs 60,000 to the user’s wallet in 1.5 minutes. It has tied up with several unnamed NBFCs for this.
- MobiKwik will sanction the loan in 30 seconds on the basis of a risk scoring model (very likely proprietary) called Mobiscore using AI and data analytics, the company said.
- The loan can be repaid in 6-9 months either from the MobiKwik app or by auto-debit from the user’s bank account.
In order to get the Boost loan, a user needs to enter their PAN and other KYC details to see the amount they are eligible for, which will then go through a possibly automated process to accept or reject the loan. The company claims that the amount will be credited to the wallet in about 5 minutes.
According to MobiKwik, this is the first loan disbursal which goes directly into a user’s wallet, with the option to transfer to their bank account. The loan does not have any limitations in terms of spending and can be used across any offline or online purchases.
In July, MobiKwik had launched instant loans of Rs 5,000 in partnership with Bajaj Finserv, targeting new to credit customers and small business owners. A ‘new to credit’ customer does not have any credit score and generally ignored by most banks for sanctioning credit. The following month, it also made available credit card bill payments on its app.
- MobiKwik claims that it has already crossed 100,000 loan providers on Boost
- It claims to have 3 million direct merchants and 107 million users
- It has partnerships with BSNL, Bajaj Finserv, IndusInd Bank, IDFC Bank etc.