Entities Involved

Loans originating from Sahay would involve the participation of multiple parties. Below is a brief summary of each entity and the role they play:

  • LSP: Loan Service Providers are the “agents of the borrower” [Described in detail above]. They
    focus on different borrower cohorts (Target Segments) and build the best digital experience to
    disburse loans to that group. LSPs may or may not participate in the underwriting process(via
    FLDG/other agreements). Sahay is one such LSP.
  • AA: Account aggregators are “consent managers”. They help consumers share their data (stored
    in banks, GSTN, etc.) with potential lenders for the purposes of getting a loan. AAs solve the
    problem of data authenticity and improve customer experience.
  • PCR: Public Credit Registry is a real time record of the current liabilities of the borrower. It’s a
    public utility hosted under the aegis of RBI and will be used by lenders to assess the borrower. Until
    the actual PCR comes to life, lender’s will depend on Credit bureaus (like CIBIL) to get this data.
  • UPI E-mandates: Traditionally lender’s have utilized NACH/ECS procedures to auto-debit the
    borrower. While these methods work, the poor UX is an obstacle for many consumers. By utilizing
    UPI E-mandates, Sahay’s lenders will be able to enhance customer experience and reduce loan
    disbursement times. NPCI is already making necessary changes to UPI for enabling this use case.
    Necessary safeguards are also being built to ensure lenders are able to recover deployed funds.
  • GSTN: GSTN contains a record of almost all digital invoices being raised in India today. This
    repository of information will help lenders better assess the future cash flow of SMEs and thereby
    extend appropriate loans.