ST Bureau
New Delhi
Loan
frame is India’s leading fintech marketplace for SME lending which makes
obtaining credit for an SME a lot easier and efficient. The team has merged
world class technology, processes of global financial institutions with deep
Indian SME lending experience.
frame is India’s leading fintech marketplace for SME lending which makes
obtaining credit for an SME a lot easier and efficient. The team has merged
world class technology, processes of global financial institutions with deep
Indian SME lending experience.
Led
by Shailesh Jacob, who has previously helped Copal Amba transform itself from a
start-up to the #1 firm globally in the outsourced research & analytics
industry with over 2900 professionals and 200 institutional clients, Loan Frame
has even before commencing full scale operations acquired funding of US$ 2.25
million in its seed round.
by Shailesh Jacob, who has previously helped Copal Amba transform itself from a
start-up to the #1 firm globally in the outsourced research & analytics
industry with over 2900 professionals and 200 institutional clients, Loan Frame
has even before commencing full scale operations acquired funding of US$ 2.25
million in its seed round.
An
angel investor himself, Shailesh is not new to entrepreneurship with investment
in over 20 start-ups. His leadership and the business model of Loan Frame has
already won many admirers in the financial services community with people like Toos
Daruvala, Co-Chief Executive Officer of MIO partners Inc, former Senior Partner
and Board Member of McKinsey & Co; Parag
Saxena, Co-founder Vedanta Capital and CEO and Founding General Partner of New
Silk Route along with William (Bill) Campbell former chairman of Visa
International and CEO of Citibank Global, having agreed to come on board as
investors and board members.
angel investor himself, Shailesh is not new to entrepreneurship with investment
in over 20 start-ups. His leadership and the business model of Loan Frame has
already won many admirers in the financial services community with people like Toos
Daruvala, Co-Chief Executive Officer of MIO partners Inc, former Senior Partner
and Board Member of McKinsey & Co; Parag
Saxena, Co-founder Vedanta Capital and CEO and Founding General Partner of New
Silk Route along with William (Bill) Campbell former chairman of Visa
International and CEO of Citibank Global, having agreed to come on board as
investors and board members.
In
an exclusive interview with Startup
Terminal, Shailesh Jacob, Founder
and CEO, Loan Frame shares more insights about his venture and future
goals.
an exclusive interview with Startup
Terminal, Shailesh Jacob, Founder
and CEO, Loan Frame shares more insights about his venture and future
goals.
Excerpts:
ST:
What was your inspiration behind starting up a new venture?
What was your inspiration behind starting up a new venture?
Shailesh
Jacob: With more than 36 million MSMEs, small business lending in
India is one of the single largest untapped lending opportunities in the world.
Financing for SMEs, one of the biggest drivers of India’s growth story even
after 70 years of independence still remains a huge challenge.
Jacob: With more than 36 million MSMEs, small business lending in
India is one of the single largest untapped lending opportunities in the world.
Financing for SMEs, one of the biggest drivers of India’s growth story even
after 70 years of independence still remains a huge challenge.
We wanted to create a differentiated
funding platform that offers customized financing solutions for SMEs that
provides speed, transparency and wider choice. Loan Frame provides a hassle-free
financing experience with the entire process taking only a few days versus
traditional financing solutions that takes months.
funding platform that offers customized financing solutions for SMEs that
provides speed, transparency and wider choice. Loan Frame provides a hassle-free
financing experience with the entire process taking only a few days versus
traditional financing solutions that takes months.
ST:
Please tell us more about your organization.
Please tell us more about your organization.
Shailesh Jacob: Loan Frame is a fintech company. We focus on lending to
small and medium enterprises (SME) and aspire to be the country’s largest
technology enabled SME lending marketplace. We believe that through technology we
can solve one of India’s biggest economic problems.
small and medium enterprises (SME) and aspire to be the country’s largest
technology enabled SME lending marketplace. We believe that through technology we
can solve one of India’s biggest economic problems.
We provide a platform where the lenders and borrowers can connect
and the best possible loan products can be offered to the borrower at most
competitive interest rate in a highly efficient manner.
and the best possible loan products can be offered to the borrower at most
competitive interest rate in a highly efficient manner.
ST: What
business opportunities do you see particularly in your sector-SME
Lending?
business opportunities do you see particularly in your sector-SME
Lending?
Shailesh Jacob: Indian
economic progress can be accelerated by developing SMEs. Today, they employ
over 80 million and contribute as much as 9% to the Indian GDP. Now, consider
these statistics, as many as 90% of these institutions don’t get access to
institutional credit. It is not always because there is a dearth of credit options
but because there exists institutional apathy and distribution challenges when
it comes to lending to an SME.
economic progress can be accelerated by developing SMEs. Today, they employ
over 80 million and contribute as much as 9% to the Indian GDP. Now, consider
these statistics, as many as 90% of these institutions don’t get access to
institutional credit. It is not always because there is a dearth of credit options
but because there exists institutional apathy and distribution challenges when
it comes to lending to an SME.
Even
when the credit is made available it is usually against security. We believe
that every enterprise has diverse needs and the products should suit the
business rather than the opposite. This is a INR 32.5 trillion opportunity that
can be a catalyst for India’s economic progress. We believe that there is
fortune at the bottom of this pyramid that’s waiting to be tapped.
when the credit is made available it is usually against security. We believe
that every enterprise has diverse needs and the products should suit the
business rather than the opposite. This is a INR 32.5 trillion opportunity that
can be a catalyst for India’s economic progress. We believe that there is
fortune at the bottom of this pyramid that’s waiting to be tapped.
ST: How
has been your entrepreneurship journey so far?
has been your entrepreneurship journey so far?
Shailesh Jacob: Loan Frame has grown rapidly since
2016. A year seems to have gone by quickly and we have already received loan
requests summing up to thousands of crores. In a very short span of time, we
have been able to win the trust and confidence of borrowers and lenders from across
the country; who realize the value addition offered by our technology, credit
assessment and lender match algorithms. We are introducing some very exciting
small business loan products next quarter that will allow many of our customers
to get quick funding.
2016. A year seems to have gone by quickly and we have already received loan
requests summing up to thousands of crores. In a very short span of time, we
have been able to win the trust and confidence of borrowers and lenders from across
the country; who realize the value addition offered by our technology, credit
assessment and lender match algorithms. We are introducing some very exciting
small business loan products next quarter that will allow many of our customers
to get quick funding.
 |
| Shailesh Jacob, Founder and CEO, Loan Frame |
ST: As
an entrepreneur, what challenges do you face in your day to day professional
life, if any?
an entrepreneur, what challenges do you face in your day to day professional
life, if any?
Shailesh Jacob: You
are always faced with limited resources whether it is time, money, people or
other resources. We are creating a new industry and it takes time to educate
and convince various stakeholders on our value proposition to each of them.
are always faced with limited resources whether it is time, money, people or
other resources. We are creating a new industry and it takes time to educate
and convince various stakeholders on our value proposition to each of them.
ST: How
big is your team? Are you planning to hire more?
big is your team? Are you planning to hire more?
Shailesh
Jacob: Currently we are team of around 30 members. We are immediately
looking for high potential talent across sales, technology, credit and other
functions.
Jacob: Currently we are team of around 30 members. We are immediately
looking for high potential talent across sales, technology, credit and other
functions.
ST: What
are your future plans?
are your future plans?
Shailesh
Jacob: We are aiming to build the largest SME lending
marketplace in the country. We want to be the preferred choice for SMEs seeking
financing. We want to give SME loan borrowers the much-needed transparency in
their borrowing choice, and make obtaining business finance a more pleasant
experience. We aspire to reach hundreds of thousands of business and for this,
we are expanding our Corporate Partner Program, wherein corporates partner with
us to meet the financing needs of their vendors, dealers, distributors,
merchants and other ecosystem participants.
Jacob: We are aiming to build the largest SME lending
marketplace in the country. We want to be the preferred choice for SMEs seeking
financing. We want to give SME loan borrowers the much-needed transparency in
their borrowing choice, and make obtaining business finance a more pleasant
experience. We aspire to reach hundreds of thousands of business and for this,
we are expanding our Corporate Partner Program, wherein corporates partner with
us to meet the financing needs of their vendors, dealers, distributors,
merchants and other ecosystem participants.
Loan Frame also has a Business Partner
Program, wherein we partner with CAs, Company Secretaries, Wealth Managers, and
small financial advisory firms to help them meet their clients’ borrowing
requirements.
Program, wherein we partner with CAs, Company Secretaries, Wealth Managers, and
small financial advisory firms to help them meet their clients’ borrowing
requirements.
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