All you need to do is sign up on EarlySalary through Facebook or LinkedIn and answer a few questions.
EarlySalary’s CEO Akshay Mehrotra said people also need to upload their PAN number and bank statements.
“Within ten minutes, the credit is underwritten digitally,” said Mehrotra who launched the platform with Ashish Goyal and Jay Jain.
In a conversation with ET, Mehrotra said PAN and bank account details will reveal details about a person's credit history, which will be important to know whether to lend or not.
The Pune-based startup raised $1.5 million, or about Rs 10 crore, in November last year and it will use this amount to give out loans of between Rs 10,000 and Rs 1,00,000 for a period of seven to 30 days.
The interest rate charged is at 24-30 per cent. EarlySalary’s potential users are youngsters in the 22-30 age group.
No one fleece the firm as the founders say social media will play an important part in determining who the loans will be disbursed to.
“If someone has defaulted on a loan payment, then chances are that Facebook 'friends' of that person might not find it easy to get a loan approval,” said Mehrotra.
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