True Credits brings in $ 30 million in debt financing to offer payday loans


True Balance’s app was originally introduced to help users manage phone calls and data usage and eventually began offering bill payments and payday loans through True Credit.

The company claims to have offered loans of over INR 700 to 7 million Indians, with loan amounts ranging from INR 1,000 to INR 50,000.

The Reserve Bank of India (RBI) working group reported on a large number of illegal digital credit apps (DLAs) in the country and made recommendations on how to manage them.

True Credits, a non-bank financial company (NBFC) operated by True Balance, has raised 30 million from investors in India and Korea. Northern Arc, Arthmate, Shine Star, E clear and Hinduja and other Korean investors were the participants in the round .

True Balance India, a wholly owned subsidiary of Balancehero Co. Ltd., Korea, is an RBI authorized credit platform. The True Balance app was founded in 2014 by Cheolwon “Charlie” Lee and launched in India in 2016.

Once founded, the platform began offering a range of financial products to its customers, including the ability to pay utility bills and get instant loans. According to the company, it has so far paid out loans worth more than 700 Cr to 7 million Indians with ticket sizes ranging from INR 1,000 to INR 50,000. The credits are granted through True Credits, an NBFC licensed by RBI.

True Balance’s app helps users manage phone calls and data usage. It uses an Alternative Credit Scoring System (ACS) and machine learning-based underwriting models to offer loans to borrowers with poor creditworthiness. Even if the company is not yet profitable, it aims to break even by the end of this financial year.

Digital Loan Apps (DLAs) in India

Last week, the Reserve Bank of India’s Working Group on Digital Lending Through Online Platforms and Mobile Apps said 600 of the 1,100 loan apps in app stores are operating illegally. A cursory glance at an app store platform such as the Apple App Store or the Google Play Store reveals many predatory loan apps which are available to Indian users. Many users have made complaints about this app that we found on the Google Play Store, but it is not certain whether it works illegally.

User complaints include the platform charging exorbitant interest rates, failing to register bills even after completion, and threatening to access users’ contact lists and send messages to the numbers on them.

In response to these complaints, the RBI working group made recommendations, mainly focused on improving customer protection and ensuring the security of the digital credit ecosystem.

RBI recommendations

In the report, the working group made recommendations, all of them DLAs to a verification process by a node agency to be set up in consultation with those involved. “A node agency should be set up that primarily checks the technological credentials of the DLAs of the balance sheet lenders and LSPs that operate in the digital credit ecosystem. It will also keep a public register of verified apps on its website, ”the report said.

The report also recommended that all loan servicing, repayments, and other transactions be carried out directly to the accounting lender’s bank account and that withdrawals always be made to the borrower’s bank account.


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