The start-up Fintech Slice announced on Wednesday the launch of a new card offer with a credit limit from ??2,000. This is the lowest credit limit on a card available in the Indian credit card market.
The move aims to affect nearly 200 million Indians who transact online but do not have a credit card due to their low income or bad credit history.
Traditional credit card companies typically serve “premium customers” who are in the higher income brackets with cards that have high credit limits and many benefits in the form of travel points, interest rates. lower and refund offers. The Bengaluru-based startup wants to change that.
“The definition of premium users or the highest percentage of the population is quite mechanical and static in the industry. At slice we have really invested in finding an alternative to that,” said Founder and CEO Rajan Bajaj. Until now, Slice has offered a credit limit between ??10,000 and ??10 lakh on his cards.
A user will be able to obtain a higher credit limit by correctly using the limit issued and by repaying contributions on time. The company will not charge a membership fee or annual fee on its new offering and will offer the same benefits available on its existing “super card” product, which is also Slice’s key offering. Slice aims to help users with no credit history build healthy credit scores with its new card offering, according to the company statement.
Bajaj founded Slice in 2016. The company claims to issue up to 1 lakh of super cards every month, has 50% month-over-month growth, and has non-performing assets (NPA) of less than 2%. .
“Over the past few years, we have actively invested in building a strong risk infrastructure by leveraging data science. Without strong risk management capabilities, it is impossible to scale such a business and create such a truly inclusive product. But once the capacity is built, no one can deprive you of the growth. Currently, with 50% month-on-month growth, our APN is still below 2%, a validation of our superior credit underwriting capabilities, ”Bajaj said.
The fintech startup has raised around $ 83.8 million in debt and equity since launch.
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