By CNBCTV18.COM Sept 12, 2020 12:17:57 AM IST (Published)
Hit by disruptions due to the COVID-19 pandemic, digital lending app CashBean on Friday said it is expecting its non-performing assets (NPAs) to surge to 15 per cent. CashBean app is run by P C Financial Services, a 100 per cent subsidiary of Nasdaq-listed Opera Limited.
Hit by disruptions due to the COVID-19 pandemic, digital lending app CashBean on Friday said it is expecting its non-performing assets (NPAs) to surge to 15 per cent. CashBean app is run by P C Financial Services, a 100 per cent subsidiary of Nasdaq-listed Opera Limited.
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Collections are down drastically due to the impact of COVID-19, said PC Financial Services Chief Financial Officer Raghuvir Gakhar.
There has been dislocation of people due to income disruption which has impacted collection, he said, adding "some customers have gone back to their hometowns so if we do some collection their number is not reachable sometimes".
"We see a spike in our NPA...NPA percentage can go up to 10-15 per cent," he said.
He also said that the lending activity is very low right now.
"We are just giving loans to our repeat customers who are having good credit history with us. So we are only giving loans to only those and not to everyone," he said.
The app provides small ticket-size unsecured loans with tenure up to 2 months with average interest of 33 per cent per annum.
"We are doing small ticket loans and it's a complete digital journey and there is no manual interference. So once you download the app, you just do your KYC and then we check the credit score," he said.
On that basis of risk assessment, the amount is disbursed within 10-20 minutes into the customer's account, he said.
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