THE EASE OF COMPLIANCE ensured by the Reserve Bank of India (RBI) has welcomed a significant number of fintech companies into the competitive lending space. One such digital lending startup is Revfin. Founded in 2017, the startup finances commercial electric vehicles (EVs) largely in virgin territories like lower-tier cities. The lender has a presence in 18 states and primarily caters to that very risky customer segment that has no credit score. Even though 80 per cent of Revfin’s borrowers do not have any credit score or history, the company’s Co-founder and CEO, Sameer Aggarwal, reveals that the default rate at the company was below one per cent.
Credit score and history of customers help lending companies assess risk while offering a loan. Revfin has its own risk assessment tool. “We measure customers’ intention to repay by using the psychometric assessment tool which we have developed jointly with IIT Kharagpur. The tool analyses customers’ behavioural traits to identify their intention to repay a loan,” explains Aggarwal.
Funding EVs in Small Towns
Currently, Revfin has an average loan size of about Rs 1,18,000. The startup also focuses on delivering after-sales services. “We assess risk on the product side. We look at the risk that comes with EVs. We partner with manufacturers and dealers to ensure that all the services are provided to customers post-sales,” he says.
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