The problem MAKSPay solves
Marginal and Low-income families can get access to credit and capital to meet their day to day expenses. MGNREGA workers can use our mobile application to check their outstanding wage payments; these are pending payments by Government of India for the work they have already rendered. Once the borrwer installs MAKS Pay Mobile Application:
- We help them onboard and register with Account Aggregator (In our use case its OneMoney).
- Once the registration is complete, we request the user to link their Bank Account and MGNREGA Account.
Bank account and active MGNREGA job worker number validation is done through OTP verification.
- We then request the user to give us Consent, to gather required transactional details from their Bank account (this would help us validate their past payments from MGNREGA) and also link MGNREGA Job Card Number to confirm the outstanding payments to their Bank account. This data is required to qualify them for a Loan Process. Along with this, they would give us Consent to share this Financial Information with Lenders.
- The information gathered and analysed is then sent across to Lending Community - via API's to - either OCEN(Open Credit Enablement Network) or other Banks/NBFC's directly participating in this Lending process.
- Offers from different Lenders received are then shown to the user. We help them guide through the Loan Application process.
- Once the user selects a specific Loan offer; We inform the corresponding Lender and request the user to provide their UPI handle (if its not available, we will help them set it up). This is important, so that we setup Auto-repayment mandate as part of the Collections flow. This will reduce the defaults and have digital collections in place.
- We monitor the users bank account till the payments from MGNREGA are credited to users account and corresponding debit happens towards the outstanding Loan amount.
- Loan is then closed.
- User can re-apply for new Loan.
Challenges we ran into
Understanding MGNREGA Work allocation, Systemic updates on Work completion, Transaction and Payment process.
Finding detailed and appropriate data for our use case.
We had to Mock user data - as MGNREGA API was not part of the current FIP list.