mPokket: Simplifying Borrowing for Working Professionals & College Students

Gaurav Jalan,Founder & CEO

Gaurav Jalan

Founder & CEO

At some point every month, we find ourselves in need of money at a short notice. However, getting a loan from a bank is time-consuming and requires a lot of documentation. Cash advances on credit cards is another alternative, but not everyone has a credit card and the interest rates are also very high for small amounts. Moreover, it is awkward to ask friends and relatives for money. In such cases, the best choice is to go for a user-friendly instant loan app to apply for a personal loan. These loans do not require much documentation and get approved at short notice without any collateral. The process is less time consuming and much more convenient when compared to traditional bank loans.

Founded in 2016, mPokket is a market leader in providing small ticket loans to working professionals and college students. “Rapid growth in smartphone penetration has provided an opportunity to reach and serve millions of digitally savvy customers,” explains Gaurav Jalan, Founder & CEO, mPokket.

Simplifying Borrowing
Based in Kolkata, mPokket has conceptualized its entire service to provide borrowers a seamless and fast experience. Its fast approval and instant loan mechanism simplifies the process of borrowing. The user
has to simply download the app and register on it by using their mobile number and Google account. After that, the user needs to provide some KYC documents before they are eligible to borrow. The entire process from downloading the app to KYC approval can be completed in under 30 minutes.

mPokket has built an artificial intelligence and machine learning powered automated algorithm that processes hundreds of alternate data points in real time to determine the amount a user can borrow, which is their credit line. The credit line is dynamic and can change over time as the algorithm gathers more data and is able better assess the credit risk of the borrower. If a borrower has an available borrowing limit, on making a loan request, the money is instantly deposited in their bank account. Users can repay the amount over a period of four months with nominal interest charges.

The team has optimised the underwriting algorithm over the years based on data from the more than 23 million loans they have disbursed till date. This allows mPokket to accurately assess the credit risk of even new to credit borrowers who do not have CIBIL scores and offer them loans while other lenders are not. Hence mPokket has been able to establish itself as a market leader in this segment.

The Financial Journey
The Covid-19 pandemic has hugely impacted both individuals and the Indian economy as a whole. mPokket typically caters to low-income individuals who are in need of short term credit. “We start from ₹500 and currently lend up to ₹30,000. Our purpose is to help the youth achieve financial independence. Towards this end we also have a scholarship program for college students based on merit and financial needs, under which we have already disbursed more than 1000 scholarships and intend to disburse 5000 more over the next 12 months,” says Gaurav.

The One-Stop Provider of Financial Services
According to Gaurav, almost 80 per cent of mPokket’s loans are cheaper than cash advances on credit cards. The startup is known to provide cheap, easy access to credit and helps users build a credit history and improve their credit score. Going forward, the company aims to offer more products and services to help customers in their quest for financial independence..

Very soon the platform will launch ‘buy now pay later’ products where customers can purchase a product or service and pay for it later. It will also introduce micro-insurance products and help customers improve financial literacy and find employment, all via its mobile app.