Want a loan? The options open for you are –
You could go to a bank but the process can be cumbersome with multiple forms, document submission etc. Loans where the bank does not have a collateral are quite difficult to get approved. If you are lucky and the bank does approves your loan application you would need to pay an interest fee as well as processing fee on the loan amount.
You could ask a favour from a friend or family member; they will surely not charge you an interest or processing fee. But this may be a possible solution for a few thousand rupees but imagine asking a friend for Rs.50,000. It will be difficult for you to ask for such a large amount and most probably will be difficult for your friend to give such a large amount in one go at short notice. You could go to multiple friends to ask for the loan but that will mean asking a favour from multiple people. This will be an uncomfortable discussion as well as a long process.
Imagine if there was a third way you could collect a lump sum amount without any interest fee and a negligible processing fee. Imagine if you ask your a few friends to start a saving group (commonly called bhishi, committee, BC, chitty across India) – 10 of your friends and family members can decide to collect Rs.5000 each on a fixed date, say 10th of each month. On each cycle all friends collect the funds and one of the group members is selected as the winner and given the entire lump sum. This process repeats every month until each friend has received the lump sum once.
In this simple manner each of the group members receives the pooled amount of Rs.50,000. Nearly all friends receive the lump sum sooner than if they had saved alone. No one pays any interest for the early access of funds.
This sounds really good right?
You or your group may have been tempted to start such a saving group; however the hassle of operating such a group might have scared you. You might have felt who would organise the meeting to select the winner, who would collect funds, who would keep track of payments, who would keep reminding members about the outstanding payments etc.
What if; there was an easy, hassle-free, secure and convenient way to manage this entire process? What if; there was a mobile app that allows you to –
Create a saving group
Invite friends to join your group
Automatically select the winner of each cycle
Facilitate direct bank-to-bank account transfers without any fund locking
Keep track and notify all group members about payments
Remind the members that have not paid.
Sounds too good to be true?
Presenting Finlok – India’s 1st Group Saving App that can help you operate your saving group in an easy, secure and transparent manner. Finlok is based on an age old concept known across India by multiple names – bhishi, committee, chitty, BC among others. Finlok has brought this trusted model into the online world through its mobile application.
With Finlok users can create a saving group with people in their network (friends, office co-workers, family members, neighbours). In a matter of a few clicks you can set-up their savings group on Finlok’s mobile app. From there all you need to do is invite people to join your saving group by selecting contacts from your address book and let Finlok do the rest.
Once your friends register on Finlok and join your group your group gets started. From here Finlok makes the entire group operation – selecting the cycle winner, sending reminders and notifications, keeping track of payments and enabling direct bank to bank transfers (using BHIM-UPI – we do not ever hold your money). With Finlok’s savings group; each member of the group receives a lump sum fund, creates a saving discipline.
Watch this explainer video to understand more –
The flow is as follows (you have already completed the steps highlighted) –
A user downloads Finlok App
User completes the registration process
User sets up their BHIM-UPI address on Finlok
User creates a saving group by selecting – amount, date for payment, period of saving and number of members
User invites his friends to join his group by choosing contacts from their contact book
Finlok sends an SMS inviting these friends to join the group along with app download link
These friends will download Finlok and complete process 1-3
They would then review the JOIN request on their HOME screen to complete the group joining process
Once enough people have joined the group the group can be activated
Once ACTIVE the system would select the beneficiary for the first cycle and notify each member about the cycle winner
Each member would then be able to pay their share directly to the beneficiary from the Finlok app
The money moves directly between the sender and receiver bank accounts with No fund-locking with Finlok
Finlok app keeps track of payments, reminds the members that haven’t paid and ensures the smooth operations of your group
Once all members have paid the first cycle completes
On the next due date; as the group admin you would be selected as the beneficiary (giving you a 0% interest loan from your group) – step 11-13 would repeat
The cycle would complete until each member has received the lump sum amount once.
So let us recap –
No Scam here – You can avail an Interest Free Loan
Hope you can believe us now. If not see our recognitions by (among others) –
You do not need to deposit money with anyone
You do not need to submit any documents or collateral with anyone
The savings group operates completely on trust. You do not need to share any document or personal data with anyone. All transaction and group related data are stored securely and are not accessible by anyone.
Do not need to pay any interest on the amount collected
As admin you receive the funds in the second cycle; this gives you access to 0% interest or Interest Free loan from your friends.
Do not need to pay high processing fee to collect the amount
For this operation Finlok charges a nominal fee; that too only on your third savings group. The first two groups are absolutely free!
So no more postponing that –
Buying that dress for the cousin’s wedding
Special gift for their parent’s anniversary
Investment for meeting future goals
Buying that bike.