More than RS 3.5L CR is rotated in cash based financial models (Rotational Savings & Credit Associations - locally called informal chit funds, bhishi, VC, committee etc.) within the low and middle income groups across India.
Finlok intends to digitise ROSCAs and use analytics to offer financial services to the millions that are underserved across India. Finlok allows users into a network/community wherein they can get together as a saving group and save, borrow and earn returns together.
Finlok allows users to bring their groups (community, neighbours, family, friends) together to operate savings groups. With Finlok’s savings groups (based on the concept of ROSCA/ Informal Chit Funds/ Bhishi/ Committee/ Kitty) a group can save a corpus, borrow both from their group as well as Finlok, and earn attractive returns.
Giving an example of an active group with Big Basket delivery executives in Pune: The Finlok team explained the concept to Moinuddin (Moin) who got onboard immediately. Moin created a monthly savings group of Rs 1,000 with 10 of the delivery boys at the warehouse. Moin requested Finlok to allocate the last cycle to him, aiming to get a return on his saving behaviour. Each month one of the group members receive a corpus of Rs 9,000 from the group members; and the cycle repeats until each member has received the corpus once. The members receiving the funds in the later cycle are provided returns as an incentive from Finlok. In addition, the Finlok platform understands each member’s risk profile and offers credit to group members.