BENGALURU: RedCarpet , a student microlending startup that provides loans without credit card and bank account details, has raised $2.5 million in a funding round led by Lightspeed Venture Partners.According to sources, the funds will be used to improve the technology behind risk evaluation, introduce new student-lending features , hire data scientists and deepen market penetration . Gurgaon-based RedCarpet, which began operations in November 2015, arranges loans of up to Rs 60,000 per borrower, with the average loan size at Rs 5,000-8,000.However, interest-free rates are offered to individuals repaying the loan within a month. It receives up to 500 applications a day, with 80% of these being rejected, said industry sources. It was earlier backed by famed Silicon Valley accelerator Y Combinator. The Indian market for loans to college students to buy consumer products is estimated at about $8 billion (about Rs 53,750 crore), according to RedCarpet.

Source: Economic Times March 01, 2017 03:29 UTC