Perpetuity Capital: An NBFC redefining the Automative Finance for the Unbanked and Informal economy


According to the World Bank’s Global Findex Report 2017, its latest edition of this report thus far, more than half (55%) of new bank accounts opened globally are from India. Yet, banking does not translate to financial inclusion, as merely opening a bank account doesn’t guarantee access to credit. 

Still, with 190 million Indians unbanked, it is important that this population too has access to a future that is fiscally sound. To resolve the issue of inclusion and provide smooth & affordable financial services to the underbanked, NBFCs have been playing a key role in bridging this gap.

Perpetuity Capital was established by Karmveer S. Dhillon in 2017, with an aim to provide automotive finance to the unbanked and informal sector of the economy. The company primarily focuses on financing Commercial Vehicle, Personal Vehicles, and used Personal Vehicles. The company offers loans to customers at reasonable interest rates with flexible tenure loans. 

Perpetuity’s technology stack with its simple and user friendly UI/UX makes the whole loan application frictionless for borrowers. Its integrated APIs on the backend helps us verify documents and processes loans within 48 hours. The company aims to make the whole loan application process from origination, verification and disbursement seamless for its customers. 

The USP of the company lies in the flexibility offered with reasonable interest rates and quick turnaround time without driving the borrowers/ benefactors into extra hardships. 

It aims to establish its mark and compete with the incumbent NBFCs(Manappuram Finance, Tata Capital, Shriram Transport Finance, etc.) and Digital Lending Platforms in providing the best services in the sector. And in process, carving its own niche, that would be an amalgamation of already existing financing systems in the market.

Though electric vehicles are new in the market, the technology is still at a very nascent stage. According to a report published by NITI Aayog, the electric vehicle financing sector in India is expected to be around Rs. 3.7 lakh crores by 2030. 

In the present scenario, there are very few NBFCs who are offering loans for electric vehicles, at exorbitant interest rates of 20% to 35% annually deeming them risky. The reason for a lack of financing in this segment is owed to unestablished electric vehicle brands and consequently no clarity on their resale value.

Speaking on the Opportunity for NBFCs in the rising sector, Karmveer S. Dhillon, Founder of Perpetuity Capital, says,

“We are aiming to become a one stop solution for automotive financing. In order to achieve this, we follow a hybrid model which is a combination of digital and physical, as compared to other incumbent NBFCs who run a predominantly offline and broker driven model. We use this model to source loans and underwrite credit by analysing their digital footprint (in addition to traditional data points i.e. bank statements, cibil scores) which includes a number of data points including digital wallet transactions, FASTag routes, eway bills etc. to better understand their ability to repay their loans .

We are currently working towards building and enhancing our customer base. In the next year, we are planning to launch our web and mobile platform applications which are currently in beta testing. The application will be available for both Android and iOS. Parallely, we are also working towards growing our loan book to over 50 CR as we expand to newer geographies.”

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