A man was trying to apply for a loan for his son’s education.It so happened that somebody had fraudulently taken a loan in his name and hadn’t repaid, due to which the bank wasn’t willing to sanction the loan. After multiple futile visits to the bank and credit bureau he signed up with Credit Sudhaar. His accounts were cleared, and he was able to send his son abroad for higher education.
Most people in India don’t fully understand credit health and its implications on our lives.World over, being credit healthy is a concept that is cherished. It has relevance in almost every facet of life from loans and the rate of interest you are charged, telecom connections, jobs, rental markets through to insurance premia.
Arun Ramamurthy and Gaurav Wadhwani were finance professionals with a background in retail credit and credit analytics and had worked in companies like Standard Chartered Bank, Citibank and Deutsche Bank. It was in organizations like these that they were made painfully aware of the perils of lending in a non-bureau environment. In 2010, they started Credit Sudhaar, with an intent of improving credit health in India.
“On a financial front there was a chasm between where people were and where they wanted to be. Credit Sudhaar intends to be the “go to” place for anybody who wants to manage their credit professionally,” says Arun.
They focus on everything related to your credit health, starting from credit restoration, to credit enhancement and finally credit protection. They have three packages – titanium, platinum and gold that deal with various combinations of these.
Credit restoration is where they help you undo the negative credit record that you might have developed in the past. This includes everything ranging from checking Cibil, Eqiufax, and Experian credit reports and notifying them if any error exists, to giving you small repayable loans to aid in improving your credit worthiness. This is often followed by enhancement, where the focus is on improving your credit score, so as to get you lower interest rates, and more easily available loans. They also help you with your income expense balance and other such nitty gritties. The final module of protection deals with safeguarding your clean credit record.
There are 15 crore people on any of the Credit Bureaus in India, thereby giving their organization a large untapped market to explore. Opportunities for scaling look promising, but are hindered mainly by the lack of awareness. When asked whether they target only defaulters, Arun gives a pretty apt metaphor of a gym, where people could come to lose weight, but the healthy ones can come to maintain a certain level of fitness too.
They are currently self funded and the annual advisory fee they charge for their service is their main source of revenue.