OptaCredit gets initial credit from DMI Finance

Chennai: City-based OptaCredit, an alternative-lending startup on Monday announced that it has secured an initial $4 million credit line from DMI Finance.

Founded by Kumar Srivatsan, the startup got its lending license from RBI in August 2016. OptaCredit has a hybrid approach, wherein it retains a certain percentage of loan assets generated via its platform, on its balance sheet.

“It was a deliberate plan to prove to external investors that OptaCredit and the team were thoroughly invested in the idea, and willing to take the risk, “ said Srivatsan. Using its proprietary scoring techniques, OptaCredit focuses on exploring alternative mechanisms to assessing the credit worthiness of new to credit borrowers. “We are targeting a niche segment of uncategorised employers and their white collared employees. Despite a regular income, they are unable to access credit from banks and financial institutions. With tie ups with these employers on a no risk, no liability and no cost basis, their employees can avail loans from us,” he said. The startup offers personal loans in the range of Rs 20,000 – Rs 5,00,000 thought the average ticket size has been Rs 1-Rs 2 lakh for 2- 4 years with interest rates varying from 9 -16%. OptaCredit is looking to lend over Rs 100 crore by the end of 2018.