Indian Fintech StashFin Bets Big on Credit Line Cards, Growing 20% monthly

Indian neo-banking startup StashFin is betting big in the credit-starved nation with its innovative ‘credit line’ cards that could disrupt the digital lending ecosystem of the country.

The fintech, which raised $40 million in Series B from a clutch of global investors in April this year, has reported a 200 % growth in its business in the last two years amidst a pandemic that has increased the demand for digital credit products.

Talking to Crowdfundinsider, Tushar Aggarwal, Founder, and CEO, StashFin, said the company wants to improve financial inclusion through tech-based solutions in a pandemic world that have witnessed a widening credit gap with millions of underbanked consumers ignored by traditional banking and credit systems.

StashFin is apparently one of the very few companies in India that provides its customers with a ‘Credit Line Card’, which is basically a card that allows salaried and self-employed individuals to avail themselves of an instant personal loan. The pandemic has accelerated the growth of such credit line cards as banks and NBFCs tightened their purses fearing a rise in default rates.

However, StashFin is growing at a healthy rate of 20 percent month-on-month and has acquired over one million customers so far. The StashFin Credit Line Card offers a credit line of up to Rs. 5 Lakh at low-interest rates, applicable only on the funds used. Finishing a simple application process can allow users to load their card in just 90-seconds and get 24/7 access to fund. These cards can be used online, offline, or for free ATM withdrawals at any outlet or platform across India.

Agarwal said that credit-based products need constant innovation since in this segment “one size fits all” theory doesn’t work and that customers should be given the flexibility to choose the products. Banks simply do not care about the specific needs of a consumer.

“There are tonnes of cred-worthy people in India but they are often denied credit because of lack of credit scores or bad scores. We are working on a solution that could help repair the credit history,” Agarwal said adding that out of 1.4 billion people only 300 million have credit cards but with 25 million people entering the workforce every year, the demand for credit cards is likely to increase.

Agarwal further added that though the pandemic has boosted the demand for credit but StashFin plans to not chase growth aggressively but maintain the current growth for the next two quarters.

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