We are committed to offering accessible financing options that encourage the widespread adoption of Electric Vehicles (EVs) nationwide. Building upon our strong history of co-lending, especially in rural and semi-urban regions, we have ventured into EV financing to facilitate the crucial shift towards the greener and more sustainable mode of transportation shared Santanu Agarwal, Deputy Managing Director, Paisalo Digital Limited in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).
How does Paisalo Digital Limited’s EV financing contribute to sustainability in India’s transportation sector? Shed light on Paisalo’s commitment to sustainable finance.
At Paisalo Digital Limited, our unwavering commitment is to make a substantial contribution to sustainability within India’s transportation sector. We believe in providing accessible financing alternatives that promote the widespread adoption of Electric Vehicles (EVs) across the country. While we have a well-established legacy in co-lending, particularly in rural and semiurban areas, we’ve recently embarked on a strategic collaboration with TVS Motors to provide financing solutions for EVs. This strategic move seamlessly aligns with India’s ambitious target of EV sales achieving 30 per cent of private cars, 70 per cent of commercial vehicles, and 80 per cent of two- and three wheelers by 2030.
By financing EVs, we not only extend our reach into dynamic market segments but also take a proactive step toward creating a more environmentally conscious mode of transportation. This commitment strongly aligns with India’s mission to reduce carbon intensity by 45 per cent by 2030, and EVs play a pivotal role in achieving this goal.
Through accessible financing options for EVs, our goal is to play a pivotal role in encouraging the adoption of these eco-friendly vehicles, thereby contributing to a sustainable and greener future for India.
In a rapidly changing financial landscape, how does Paisalo Digital Limited stay ahead in terms of technological innovation and adaptability to ensure that your customers have access to the latest and most convenient financial services?
Our vision remains simple and unaltered. At Paisalo, our commitment is to empower India’s underbanked and unbanked population through accessible and inclusive financial solutions.
We firmly believe in building an enduring business, and to achieve this, we must conscientiously adapt to the unique needs of communities across the country. Companies of all sizes need to engage thoughtfully, listen actively, and make well-informed investments and decisions to earn the trust of each neighborhood. Impact is most potent when it’s on a local scale.
A local bank branch, particularly in a low-income neighborhood, can succeed only if it aligns with the community’s needs. This is why, over the past several years, we have shifted our approach to providing access to financial education, along with low-cost lending products and services. This shift helps us ensure that Paisalo is genuinely Available– Aware–Affordable, especially in Unbanked Rural Centers, to better serve our customers.
We are implementing this approach through our high tech-high touch model to connect with people across India, resulting in a scalable business model with risk mitigation.
Utilising proprietary algorithms we’ve developed, our operations have expanded, enabling us to successfully extend credit to over 19 lakh customers across 18 states through 1377 touch points. This strategy empowers us to fulfill our customers’ credit needs personally and efficiently.
Paisalo is dedicated to continuous improvement of this approach, making it a strategic priority to enhance customer experience.
What strategies and approaches have Paisalo Digital Limited adopted to navigate the challenges in the Indian financial sector while harnessing growth opportunities?
At Paisalo Digital Limited, our commitment has always been to enhance financial inclusion, and addressing the unique needs of underserved communities has been a driving force behind our transformative journey.
The lending sector in India is witnessing intensified competition, not only among traditional banks and NBFCs but also with the emergence of fintech and large technology companies. This trend is significantly impacting the role of lending in the financial system. The rate at which this transformation is occurring, along with the scale of the competition, is extraordinary and rapidly increasing.
Despite these challenges, we maintain our confidence in our ability to thrive by remaining vigilant, driven, adaptable, agile, and disciplined. Embracing these qualities, we are poised to continue building our company’s success amidst this rapidly evolving landscape.
Paisalo’s success can be attributed to its disciplined approach to investing in the future. By making strategic investments in its franchise, the company ensures sustainable growth and solidifies its market presence. Across each line of business, Paisalo has continued to set new records, establishing itself as a trailblazer within the industry.
Furthermore, Paisalo remains steadfast in maintaining its credit discipline and reinforcing its balance sheet. By striking a delicate balance between prudent risk management and strategic growth, the company upholds its commitment to providing reliable financial solutions to its customers.
At Paisalo Digital Limited, we have established guiding principles that align with our core values. Recently, we’ve crafted a clear and concise purpose statement: ‘Bharat, Ab Rukna Nahi.’ This statement encapsulates our values and daily business practices, reflecting our long-standing commitment to serving our customers and navigating the dynamic financial landscape in India.
Lastly, could you provide insights into the company’s vision and future plans for expansion, both in terms of product offerings and geographical reach, and how these plans align with the evolving financial landscape in India?
Our vision remains steadfast and unchanged. At Paisalo, our commitment is to empower India’s underbanked and unbanked population through accessible and inclusive financial solutions. We firmly believe that to achieve this goal, we must operate as a robust, responsible, and vibrant company. Beyond our core lending activities, we place a significant emphasis on contributing to the communities where we operate. This, in turn, lays the foundation for increased opportunities and prosperity for all. Together, we are actively shaping a financially inclusive India where every dream receives support, and every endeavor is given the opportunity to thrive.
Our dedication to empowering India’s underbanked and unbanked communities goes hand in hand with our responsibility as a company. We recognise the importance of thoughtful engagement with communities across the country and are focused on earning their trust not only through low-cost lending products but also by providing valuable financial education. To execute this approach effectively, we have implemented our High Tech–High Touch Model, establishing unique hubs in semi-urban and rural communities.
In the fiscal year 2023, we expanded to a total of 1377 touch points across 18 states. These touch points serve as hubs for grassroots community events, small business mentoring sessions, and financial health seminars. As we look ahead, we have ambitious plans to add even more touch points in the upcoming quarters. Together, with our unwavering dedication and clear sense of purpose, we aim to drive positive change, enabling the underbanked and unbanked population to unlock their full potential and contribute to the progress of the nation.
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