We interacted with some of our early borrowers from the textile industry in Bangalore and their HR manager. This is what they had to say about their experience with PerkFinance:
Santhosh, HR Manager: We did not a offer a financial and loan offering like PerkFinance before. Our main aim was to target low-salary employees. They do not get loans easily from banks or other financial institutions, and if they do get loans, they are charged high interest rates – 5 to 10% per month on an average. Informal moneylenders usually exploit their situation and charge high interest rates. PerkFinance which offers loans at around 2% monthly interest will definitely help them. They do not have to make multiple trips to a bank to complete the paperwork required to avail loans from banks. With PerkFinance, they can apply for a loan in a few minutes from the office or factory – which saves a lot of time. As loans borrowed through PerkFinance are paid through their salaries, they avoid late fees or compounding interest which is usually the case with other lending channels, as the borrowers tend delay making payment due to other financial constraints. For loan repayment through PerkFinance, our employees need not go to the bank, stand in a queue and deposit the money.
Lakshmi: The interest charged in a loan through PerkFinance is low and because the installments are deducted through the salary, it’s very helpful. Also, taking a loan through PerkFinance can help improve CIBIL score. Banks charge a very high rate of interest. The loan amount from PerkFinance was credited to my bank account in just 2 days.
Vinay: I borrowed money through PerkFinance as I wanted to pay the house rental deposit. Compared to other loan channels, where you end up paying mostly interest in monthly installments due to high interest rate, taking a loan through PerkFinance is better. It was very easy to submit the documents through the app as opposed to banks and the loan was processed very fast.
Ramesh: I borrowed money through PerkFinance to have a fund for emergencies. I have borrowed money from local moneylenders before, who would charge a monthly interest of 6-8%.
Lokesh: I have borrowed money from an NBFC before, the interest rate charged there was very high. It took 15-20 days to get the loan approved and the process was long. Also, there are higher deductions and hidden charges, reducing the final loan amount. I got around ₹90,000 out of the ₹1,00,000 loan I had applied for. I was told ₹3,000 would be the processing charges, but that ended up being around ₹10,000. I was not informed of these when I was applying for the loan. The monthly loan installment is also more than what was told to me at the time of taking the loan.
Shivamma: I borrowed a loan from PerkFinance because the interest rate and the monthly installment were low. The loan was disbursed in 2 days compared to a bank, which would taken a lot of paperwork and many days. Because the money is deducted directly from the salary, I don’t have to take time off from work to go to the bank to pay the installment.
Mahendra: I run a business – a store, I had borrowed money from a financier (moneylender) who was charging a high interest rate of 5% monthly. I borrowed money from PerkFinance and cleared that loan. Borrowing from financiers leads to a lot of arguments! Banks make you sign at least 50 times! I could borrow through PerkFinance using a single signature!
Shankarappa: I borrowed money from PerkFinance as I had to get some alterations done on my home. I got the amount in 2 days which was very useful. If I had taken a loan from a bank or NBFC, the wait would have been much longer and they would require a lot of documents and paperwork.
Shivalingaiah: PerkFinance charges an interest of just 2% and it helps me improve my CIBIL score, which will enable to borrow bigger loans at better interest rates in the future. Also as the installments are deducted from the salary, it is beneficial.