Finrek: A Credit Lending Startup Easing Loan Facilitation Between Borrowers and Lenders

Finrek Team

Finrek Team

Founded in October 2014, Finrek is a platform which helps facilitate the loan deals between borrowers and the lenders. It started as an offline entity but later switched to a hybrid model in March 2015, when it became apparent that technology was needed to scale up the company operations.

The company helps borrowers to avail loan and choose the correct lender based on their preferences, and at the same time it also makes sure that the lenders see only those leads which match their pre-set criteria. The company has a network of field agents which includes car dealers, real estate agents and Bank DSA’s (Direct Selling Agent) as lenders.

It was founded by Hemant Tilotia, along with his engineering batch mate Himanshu Agarwal.

Regarding the idea behind working in a hybrid model “To cater to smaller cities where internet penetration is still very weak, we have built a network of agents. These agents take the loan requirements of our potential clients and then send it to us. We then parse this offline information onto our online platform and share it with the lenders for processing. We always send the information to lenders in a digital format however for tapping the unexplored markets we have adopted offline mode as a point of contact for our customers,” said the team. A smart algorithm of the website filters out unwarranted leads and a particular lender gets to see leads that match their credit policy.

What problems is it solving?

Talking about the idea to start, the founders said, “We have witnessed a basic lack of efficiency in the loan approval process. The process is mundane, paper heavy and far from being customer centric. We wanted to create a platform where the user can take an informed decision and that too very efficiently. Apart from the inefficiency of the current system we also feel that much of the customer base is still untapped; people in tier II and tier III cities still rely on public sector banks and are not offered choices when it comes to loans.”

Finrek’s CRM allows the user to track the loan application from origination to repayments. The lenders can see red flags on their screens for any delay in payments and can carefully monitor the loans.

How safe is a user’s information?

The company users industry standard encryption to protect users private information. To prevent malicious attacks, it has stringent security protocols in place. The company does not take or store any credit card details or banking information of the client’s. It only saves personal information.


The company is competing with online firms such as bankbazaar and paisabazaar, which also aid in loan facilitation services. And at the same time, it also competes with banks and other loan providers which the customers can approach directly.

Monetization Model


Finrek’s Business Model

The company charges its lenders for converted leads, keeping its service free for the borrowers. On an average the lenders pay 1.2% of the sanctioned loan amount, and the commission decreases with the increases in ticket size. The company is planning to introduce a subscription package wherein lenders would pay for a package of leads filtered upon their desired criterion.

“We have built our company on a very lean model and thus we are EBITDA positive from day one,” said company founder’s Hemant Tilotia.

Future Plans of the Company

Presently the company has a network of 350 agents spanning 4 states. Among lenders the company is in tie-up with companies like Gruh Finance Ltd, Intec Capital Ltd, Credila, sk Finance, Capital Float and others. The company claims to receive about 175-200 loan enquiries every month, 60% of which get converted into successful disbursals.

The company had raised an amount of Rs.3 million in its seed round. The funds are being used to develop an MVP. The startup is planning to raise series A round of funding in coming 5 to 6 months.

It has plans to expand its service pan India. And to also make their service a complete loan house for their users. To give users innovative credit products e.g reverse mortgage or a savings account overdraft.

Do you know about any other startup working in online lending space? Share with us in the comments.

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