Capital Trust Limited consolidates rural door-step digital lending model

Capital Trust Limited, which specializes in offering income generating micro business loans in tier 3-5 regions, has forged a long-term funding partnership with some of the major financial institutions.

The digitally-enabled non-banking finance company (NBFC) said that the tie ups will enable it to build a robust capital base with high liquidity levels.

With the business correspondence relationships, Capital Trust said that it will be able to grow its credit portfolio of income generating micro loans among the underserved population in rural India.

Vahin Khosla – Executive Director of Capital Trust said: “Rural India not only has more internet users and higher smart phone penetration that the urban India, but it is also growth at much faster pace. Capital Trust plays a vital role of being a catalyst in providing income generating loans to growing rural businesses. Capital Trust is one of the first NBFCs to start cashless disbursement since 2015.”

Capital Trust Limited consolidates rural door-step digital lending model. Photo courtesy of Free-Photos from Pixabay.

Capital Trust’s chairman and managing director Yogen Khosla said that the company has got into funding relationships with a bank, a couple of NBFCs, and a person to person (P2P) lending firm. Yogen Khosla said that the arrangements will help the company to grow its digital lending footprint mainly in Northern India.

Yogen Khosla stated: “Financial inclusion through digital disbursement is at the heart of Capital Trust’s business model.

“Merging best practices of fintech and traditional financing, the company has been offering 2 loan products: Capital Magic Loans (unsecured digital loans with a ticket size of INR 30,000 and tenure of 12 months) and Micro Business Loans (unsecured digital loans with a ticket size of INR 60,000 and tenure of 24 months).”