Vikas Kothari, Founder, PerkFinance


1. How your company started?

When I began working in the family business, I noticed that our employees would frequently come up to the company and request for loans. The employees’ needs ranged from meeting emergency medical expenses or paying their children’s school fees to buying a smartphone. We noticed how employees’ faces would light up, not just when they got the loan but also when they were returning it.
A little research showed that their employees were not alone. Nearly 190 million working people in India were non-existent when it came to banks.
With my background in venture capital and FinTech, I was confident that I could use my experience to fill this void and create an impact. That’s how PerkFinance was born in 2017. I dipped into my own savings and borrowed money from my family to make my dream of social innovation and financial inclusion a reality.

2. What was the vision behind it?

The company’s vision is to enable working people to have access to money whenever they needed it and enable financial well-being. Our audacious goal is to assist over a million under-banked families and touch over Rs 7,000 crore (US$ 1 billion) in lending in the next two years.

3. What your company actually do?

PerkFinance partners with employers to provide easy, affordable loans to their employees. Our financial products improve employee well-being, thereby boosting productivity and reducing attrition.

4. Difficulties which you have faced or you are facing.

Initially, it was difficult to convince companies to partner with a company like ours to offer affordable loans to employees. But, as the companies understood the model and saw that many employees were interested in salary-linked loans and it helps companies to retain talent, companies are open to working with us.
With more than 50 companies on board, we have shown that the salary-linked personal loan and salary advance model works very well for companies and employees.

5. How your company is helping India to grow?

We are enabling people who otherwise find it difficult to get loans from banks and financial institutions, to easily get loans. Many of our borrowers do not have a credit history, and we help them create a credit history by submitting their details to credit rating agencies. This helps them borrow bigger loans at better interest rates in the future.

6. Message to young entrepreneurs.

India today is a land of opportunity, take any problem and solve for it and you can build a valuable company.