5 startups that are helping blue-collar workers achieve financial security
India is home to over 300 million blue collar workers, most of these workers are struggling with financial crisis due to lack of financial awareness and limited reach and access to easy financial solutions. While there are various companies offering financial assistance, not all of them cater to the financial needs of entry-level skilled workers or blue-collar workers. To fill the void in the community, we are listing five startups that are educating and providing monetary assistance to people across India.
Vivifi India Finance
Vivifi India Finance is an RBI Certified Non-Bank Finance Company (NBFC) enabling easier and more direct access to credit for underserved communities in India. It offers sachet-sized loans to customers who have the ability and intention to repay. Based on these customers’ loan repayments, the company then increases their credit limit to help them improve their credit score and eventually gain access to larger loans. Vivifi’s flagship loan product, FlexSalary, is India’s first personal emergency line of credit. The company now overlays payments on the UPI backbone to provide a digital credit card experience to the underserved through FlexPay. The company’s goal is to achieve financial inclusion by making credit accessible to all deserving Indians without any bias, transcending boundaries of location, literacy, monthly income and credit history.
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Upwards is a one-stop solution for all credit and wellness needs, especially for low-income segments of society who cannot obtain credit from formal financial institutions. Upwards is committed to making the process of getting loans hassle-free through the incorporation of state-of-the-art technology. For low-income communities across the country, the process of getting loans is long and often fruitless. To bridge the credit gap, Upwards is offering loans of up to INR 2.5 lakhs which are sanctioned within 24 hours to salaried workers across India. With no paperwork, fast payouts, and a focus on long/mid term/large/medium ticket PL products, Upwards delivers a personalized and superior customer experience for those in the 20’s salary bracket. 000 to INR 2.5 lakhs. Customers simply need to register with their KYC and can even upload the necessary documents online, bypassing the traditionally tedious process.
Kosh is a digital lending platform that provides access to formal credit to low and middle income (LMI) segments in India. It operates on a joint liability model that relies on group leaders and members who avail credit through the platform. The company brings together three or up to ten workers and gives them a loan. When a user logs into our Android app, they can request a loan. But before doing that, they need to add some of their colleagues and friends who are also looking for a loan. This way of grouping people allows Kosh to charge a lower interest rate on the loan. In each group, at least one member must be solvent in the traditional sense.
Niyo Bharat, a fintech platform that facilitates the opening of zero-balance salary accounts for blue-collar workers. Currently, it has tied up with ICICI Bank, Yes Bank and DCB Bank for opening blue collar salary accounts. Niyo Bharat is focused on creating simpler, smarter and safer banking services for their customers by simplifying finance through technology. It also provides a Lifetime Zero Balance Prepaid Card which is a permanent prepaid card and with lock/unlock/block card options, along with the app. The app is available in 10 vernacular languages and has several features such as passbook view, personalized statement download, support ticket creation, all in your native language.
Bueno Finance is a financial services platform that provides short term credit to blue collar workers across India. By facilitating access to formal credit, they aim to help customers strengthen their creditworthiness. Bueno Finance has a hybrid approach. A customer can apply for a Personal Loan/Instant Line of Credit which also helps build credit history and obtain higher ticket loans at lower rates. Clients can avail this loan in their bank account directly from RBI registered NBFCs. It focuses on New Credit Customers (NTC) where it offers small credit to help people build their credit history. Their “Scan Now Pay Later” product is a digital credit card through UPI. This is a multifunctional product; the customer can use it as a credit card or request money from his account as a cash loan.