My take on your points
1.I dont think for 10000 Rs any student will go for a extreme step and even company must not go to extreme level to recover money. Also complying to RBI is the only key to success in long term for any Digital lending biz. One may also argue that for a student to be eligible for a max 10000 Rs he has to borrow multiple times and he would have given back a lot of profit to company to take care of future leakages. Business models are made up after doing all these analysis of max NPA hits they can take to survive for next year and in its case they have a lot of room to survive. Just look at APR( An annual percentage rate* is expressed as an interest rate) its 72%.
2. As per AR FY20-21 100% provision is made for NPAs for FY19-20 of total amount 2.8 Lac only.
For FY20-21 max NPA is 28.30 Lac and provision done is 2.8 Lac.
For FY21-22 10% provision for NPA is 5 Lac so max NPA would be 50 Lac which very much acceptable in IMHO.
Delinquency information is very well mentioned in the AR please see below.
Have i answered your queries in a proper way?
Q: I need to know how this biz is valued?
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