Qbera is an online lending platform providing fast, frictionless, and fair personal loans to professionals. Launched in January 2017 by Aditya Kumar,the company is headquartered in and operates out of Bangalore and provides lending services through an end-to-end digital platform, enabling transfer of funds to the borrower within 24 hours of receiving the online application
Led by dynamic Founder & CEO Aditya Kumar, Qbera is all set to expand its operations in cities such as Lucknow, Jaipur, Surat, Bhopal, Patna, etc. and is targeting to disburse loans worth $1 billion in the next 5 years.
IncubateIND recently caught up with Kumar and spoke to him about impact of technology, data security and the future of Qbera.
How do you plan on doing this with such an ease and manage such a sensitive data at the same time with the help of technology?
We regularly inspect our company’s business processes – right from acquisition to underwriting to verification till disbursement and post disbursement. This is to make sure that none of the processes are insecure. All the sensitive details are housed in CRM and LOS and not everyone has same access levels.
Moreover our employees are the most critical assets to protect data. We educate them through annual and quarterly security courses, on-site briefings, training classes, and more. Also we enforce all employees to use strong passwords to improve security.
How do you plan on managing security threats like data theft?
We store customers’ personal sensitive information in an encrypted format and do not allow employees to make copies/export data that is available to them.
How do you manage digital traffic and facilitate such diverse customers?
We get leads from social media – Facebook and LinkedIn, organic and paid campaigns. As soon as loan request hits our platform, it gets pushed into risk assessment engine and generate loan offer in few seconds. Post in-principle approval, customer has ability to upload his/her bank statement and an offer is given within 4 hours – exact loan amount, rate of interest, EMI and Processing fee.
What factors does Qbera consider before lending?
Qbera takes into account the customer’s repayment history, CIBIL score, employment history, age, and income, before lending. Let’s look at how each of these parameters are evaluated.
Qbera offers personal finance to customers with a minimum CIBIL score of 575. Note: Qbera offers loans even to customers without a credit history.
A customer’s repayment record is a very important parameter that Qbera examines. Customers should have a consistent repayment record with no instances of defaults over the last 12-months.
A customer applying for a personal loan with Qbera should be at least 23 years old.
The minimum net monthly income to be eligible for a personal loan from Qbera is Rs. 20,000. Customers with incomes lower than Rs. 20,000 will not be eligible for personal finance from Qbera.
Qbera requires customers to submit their bank statements for the last 3-months in order to process their loan applications. Going by this, a customer should‘ve been in employment with a company for a minimum period of 3-months to be eligible.
What is the repayment discipline?
Customers can choose a loan tenure between 6-months and 60 months. Depending on their repayment convenience, customers can accordingly pick a tenure within this fixed range. A customer can also pre-close his/her loan at a nominal fee. Qbera currently levies a pre-closure fee of 4% of the outstanding loan balance. In order to pre-close, customers have to complete at least 12 months of repayment.
A Customer can also apply for a top-up loan after completing 9-months of his/her loan tenure.
How is Qbera different from other players in the industry?
Qbera is unique and starkly different from other players in the industry for the following reasons:
Personal Loans for low credit scores
While most lenders require customers to have a minimum credit score of 700, Qbera offers loans to individuals with minimum credit scores of 575.
Personal Loans for low income
Most traditional lenders offer loans to applicants with a minimum income of Rs. 30,000. Qbera, however, offers personal loans to individuals with a minimum net monthly income of just Rs. 20,000.
Personal Loans for employees of unlisted companies
Qbera currently caters to the instant financial needs of employees of over 7 Lakh companies in India. While private banks and traditional lenders reject applicants employed in uncategorized or unlisted companies, Qbera offers instant finance options to employees of unlisted companies as well, thereby serving a larger section of a conventionally underserved market.
Personal finance options for individuals residing in shared accommodations
Qbera does not reject applications merely on the basis of “type of residence”. Private Banks and traditional lending institutions usually reject applicants who reside in Paying Guest or shared accommodations. Qbera, however, does not disqualify them on this standard.