Ujjivan Small Finance Bank, on Tuesday, announced that it would be undertaking a strategic partnership with a leading digital lender and fintech platform, LoanTap. This move comes as part of Ujjivan’s Small Finance Bank’s API (Application Programming Interface) banking initiative. Through this initiative over 150 APIs will be made available, which in turn will offer fast and secure tie-ups for the purposes of digital lending, digital liabilities and payments to fintechs. This move also serves a dual purpose of extending the bank’s financial services to a larger array of customers through LoanTap’s platform, which will make these activities smoother and more convenient for their salaried class customers who are seeking loans.
The benefit here is that this partnership is an entirely digital one and is purely driven by technology. Customers can easily get approval on credit in a matter of minutes. LoanTap has already served around 32,000 customers to date via its platform. Add to this the fact that Ujjivan Small Finance Bank offers personal loans ranging from Rs 1 lakh to Rs 10 lakh with a maximum tenure of 48 months on LoanTap’s platform, and it becomes clear why this deal is happening.
While Ujjivan Small Finance Bank has a diverse range of services, this partnership will greatly improve the reach and accessibility for the customers and improve the banking experience for the end-user.
Ujjivan Small Finance Bank goes Digital with LoanTap as Fintech Platforms become the New Normal
With digital becoming the new norm it makes sense to partner with fintechs to boost one’s business. LoanTap was an ideal choice for Ujjivan Small Finance Bank as it is a homegrown and hyper-local digital lender with its own Non-Banking Financial Company (NBFC). LoanTap also offers a wide variety of services such as Personal Loan, EMI Free Loan, Personal Overdraft Facility, Credit Card Takeover Loans, Rental Security Deposit Loan, Advance Salary Loan, and House Owner Loans.
At present, the company is operational across over 22 cities across India including Delhi, Bangalore, Pune, Mumbai, Chennai, Kolkata, Noida, Vadodara, Nasik, to name a few.
This is not Ujjivan’s First Rodeo with Fintechs
On June 2, 2021, Ujjivan Small Finance Bank announced and undertook a collaboration with yet another fintech enterprise called Desiderata Impact Ventures Private Limited, otherwise known as Progcap. This was done in an attempt to establish end-to-end digitized invoice-based financing services and repayments for loan applications received from Micro, Small and Medium Enterprises (MSMEs) that sought out tenor working capital for their businesses.
This partnership helped Ujjivan Small Finance Bank, into a new arena of the industry as it started lending for the purpose of Supply Chain Finance. This meant that the bank would fund dealers and sub-dealers against purchases made from recognised brands through short term overdraft facility. The entire process from start to finish, i.e., from right from the lead generation, lead screening, loan sanctioning, document execution and customer on-boarding and repayments was digitised through Progcap’s platform which was entirely data-driven and geared towards smoother operations.
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