We are making a platform where users in Brazil can compare, choose, and get an online payroll-deductible loans in under 20 minutes, rather than the typical 3–4 business days offline. Today, it’s a USD 80+ billion dollar market only in Brazil, representing 60% of all personal loans — and no online platforms are approaching it.
Payroll-deductible loans works like that: the employee presents a salary deduction form from a bank authorizing the employer to deduct a monthly sum from the employee’s salary and pay it over to the lender. So, the employer starts making the authorized deduction, the loan is repaid and everyone goes their merry way. It is very popular because it is the cheapest personal loan available in the country, up to 10 times cheaper than credit card and other personal loans.
Other characteristics of this loan are:
- 92% of the market is focused on people who have stable incomes, such as retired people and public servants, who acquire job stability after 3 years of employment;
- Users can get multiple loans, which can sum up to 35% of their monthly salary and pay it back in 96 months;
- There is no need for credit scoring. If the sum of one’s monthly instalments is less than 35% of his monthly salary, he is good to go.
It represents a HUGE market that grew 20% last year, while Brazil’s economy shrunk 1%. We are bringing speed, convenience and transparency to this market. It is impossible to overstress the importance of payroll-deductible loans in sustaining the level of consumption in Brazil. It need to be fixed. We are doing it.