EASY UDHAAR

Vision for the company

Our paramount goal is to streamline and simplify the loan granting and borrowing

process, forging a seamless and user-friendly experience for our valued customers.

We recognize that efficiency and ease of use are pivotal in ensuring a positive and

stress-free interaction with financial services provided by banks.

Business model

Month after month, there is a consistent 14 percent growth in the loan amount, a trend set by

the Reserve Bank of India (RBI) in the preceding financial year, 2022-2023. During this

financial year, loans totaling a staggering 40 lakh crores were disbursed for both commercial

and personal purposes. In the financial year prior, the figure stood at 34 lakh crores. These

are monumental numbers, yet the market remains highly fragmented, with no

comprehensive solution in sight.

At Easy Udhaar, we step in to provide an all-encompassing solution, benefiting both banks

and customers. Banks traditionally allocate significant resources annually to marketing, loan

processing, KYC (Know Your Customer), and loan recovery. However, at Easy Udhaar, we

offer these services to banks completely free of charge, deriving our compensation from a

nominal 1% commission on the total loan amount throughout its tenure.

Furthermore, we pledge to simplify the loan acquisition process for customers, ensuring a

seamless experience. What might have taken a bank 15 days to process, we commit to

completing in just 3 days.

We have implemented a streamlined recovery system, which is made possible through a

comprehensive agreement that our customers are required to sign prior to the transfer of

funds into their accounts. This agreement encompasses various key features designed to
facilitate a fair and transparent lending process while safeguarding our interests. Here are

the details of our approach:

1. Scheduled EMI’s : We will take the initiative to facilitate the payment of Equated Monthly

or Biweekly Instalments (EMIs) directly from our end, ensuring a hassle-free repayment

process for our valued customers.

2. Grace Period: In recognition of the occasional financial challenges our customers may

face, we offer a grace period. For a limited period of two months, once a year, we will not

impose any penalties for non-payment.

3. Penalty Provisions: It is important to note that any instances of bounced payments will

result in the imposition of a substantial penalty. We believe in fair lending practices, and

these penalties serve to encourage timely repayments, benefiting both parties involved.

4. Account Seizure: After a period of three months of non-payment, we reserve the right to

initiate proceedings to seize the bank accounts of customers who have not fulfilled their

repayment obligations. This action is taken as a last resort to protect our interests and

maintain the integrity of our lending process.

5. Legal Action: In cases where customers persistently default on their payments beyond the

initial three-month grace period, we will commence legal formalities for asset seizure. We

view this step as a necessary measure to uphold the terms of the agreement and recover

the outstanding amount.

6. Credit Bureau Reporting: Our commitment to responsible lending means that we will only

report payment defaults to credit bureaus in cases where customers have consistently failed

to meet their obligations and after all reasonable attempts at resolution have been

exhausted.

We are dedicated to not only safeguarding our investments but also to assisting our

customers during challenging financial periods. Our approach is rooted in fairness, and we

believe that this comprehensive agreement strikes the right balance between protecting our

interests and supporting our valued customers.

To commence our company's operations, our initial strategic focus will be on serving the

educated and employed demographic within urban centres like Mumbai, Delhi, and

bangalore; particularly those individuals employed by multinational corporations. This

segment of the population is characterised by a higher level of financial literacy and a keen

awareness of the advantages associated with credit and loans.

Our primary product offerings will revolve around secured loans, with the option to provide

unsecured loans up to a cap of 15 lakhs. This decision aligns with the fact that this

demographic is most inclined to seek financing, given their understanding of the financial

benefits that loans can offer.

Notably, this sector constitutes a significant proportion of the tax-paying population and

represents a substantial portion of loan applicants. The most prevalent loan categories within

this demographic encompass home loans, automobile financing, and personal loans tailored

for purposes such as education.

By focusing our efforts on this informed and economically active sector, we intend to

establish a solid foundation for our business while providing tailored financial solutions that

meet their specific needs and aspirations. This strategic approach will position our company

for sustainable growth and success within the lending industry.

Subsequently, we are committed to extending our financial services to the vital agricultural

sector, where farmers constitute the second-largest demographic seeking loans and lines of

credit to bolster their agricultural endeavours.

Our mission is to offer tailored financial solutions that empower farmers to enhance their

agricultural practices, invest in modern technologies, and achieve sustainable growth. By

providing them with access to credit, we aim to help alleviate financial constraints of our

country’s farmers.
How we will earn

Our operational strategy is primarily centred around harnessing the capabilities of

AI-powered bots within our digital platforms, minimising our reliance on human resources.

This approach not only ensures operational efficiency but also significantly reduces labour

costs. Furthermore, we are adopting a cloud office model, eliminating the need for physical

office spaces and associated expenses, thereby optimising resource allocation.

A notable feature of our cost structure is our sole expenditure in the domain of public

relations. However, we anticipate substantial cost savings in this regard due to the mutually

beneficial nature of our partnerships with financial institutions. By delivering considerable

cost savings to banks through our innovative services, we anticipate a reciprocal flow of user

traffic from these institutions, effectively minimising our customer acquisition costs. The

nominal 1% commission we seek from banks in return for facilitating these connections is

expected to be more than sufficient to sustain our initial operations.

While our financial metrics are poised for growth in the foreseeable future, these

conservative estimates underscore the robust financial sustainability of our business model.

As we continue to expand our presence and enhance our offerings, we anticipate

exponential growth in both revenue and impact within the financial services sector.

We are poised to introduce an innovative financial concept to the Indian market by

implementing a bi-weekly payment system, which offers distinct advantages. Traditionally,

borrowers make monthly EMI payments, totaling 12 payments in a year. However, our

bi-weekly payment system doubles the frequency, resulting in 26 payments

annually—aligning with the 52 weeks in a year. This not only enhances convenience for

borrowers but also creates opportunities for our business.

The extra income from the biweekly payments allows us to explore new avenues, such as

offering specialized loans for purposes like car modification and repair, which can command

higher interest rates, averaging at 24%. This diversification of our loan portfolio enables us to
cater to a broader range of financial needs while optimising revenue generation. This a

concept for the future growth of the company.

Furthermore, we will introduce an innovative loan category in the future known as event

loans, leveraging strategic partnerships with leading event management companies and

hotel chains. This collaboration allows us to provide tailored loan solutions with higher

interest rates. These event loans/personal loans will be facilitated through foreign banks,

such as DBS, aiming to expand their presence in India.

The event loan segment holds significant potential as it addresses a burgeoning market.

With the ability to estimate loan amounts based on well-established event parameters, we

can offer financing options covering up to 90% of the expenses associated with events.

Given the substantial expenditure on events in India, this strategic move is poised to capture

a substantial customer base, translating into robust profits for our company.

By combining innovation, strategic alliances, and a keen understanding of evolving financial

needs, we are primed to make a lasting impact in the Indian financial sector while ensuring

sustained growth and profitability.