Get 'FREED' from debt-ridden crisis

FREED, a debt-relief platform, has launched debt consolidation program, MAARG, in collaboration with Trillionloans as the lending partner and Castler as the technology partner for RBI-compliant flow of payments. This new borrower-centric product aims to deepen the company's vision to provide holistic debt relief to its consumers and address toxic debt at a preventive stage.

The consolidation loans currently being offered by lenders come with a heavy cash-out and end up creating an even bigger debt trap for borrowers. However, the program offered by FREED aims to help eligible customers by consolidating their high-cost debt into one single loan, saving a minimum of 20-25 per cent on their EMI obligations and giving them a much-needed cash flow.

Talking to Bizz Buzz, Ritesh Srivastava, founder-CEO of FREED, says, "The retail debt has been on a rise for last few years. Covid did have an impact on the repayment capacity of individuals. The moratorium provided some breather to borrowers seeking relief. With economy and consumer spending returning to pre-pandemic levels, we are seeing increased utilization of credit for one's consumption needs."

On the problems faced by borrowers, he explains that the household savings have been on a constant decline and the credit consumption has gone up. The combination of rising inflation and increase in interest rates do not bode well for borrowers, who are facing debt-ridden financial hardships. A financial hardship for an over-leveraged borrower can be any reason - job loss, pay cut, loss in business, medical emergency and increase in expenses. When borrowing, one rarely plans for rainy days.

"We are expecting to enroll 10,000 consumers for MAARG in the next 12 months", he added.

Aptly named, MAARG is specifically designed for borrowers who are over-leveraged and stuck in the minimum payments loop. Aligning seamlessly with FREED's borrower-centric principle, it aims to set the right direction for stressed borrowers and open meaningful avenues for prudent spending.

Rajiv Indimath, Chief Strategy Officer, FREED, said "It is truly remarkable how various industry stakeholders came together to create a unique product like MAARG. Considering the current debt landscape, we strongly believe that this is the need of the hour. As an organisation, we are always on the lookout to deliver effective debt-relief solutions to well-intentioned borrowers. This breakthrough product is based on deep insights distilled from FREED's debt resolution products. It has been our privilege to work on this."

MAARG aims to help the borrower with expedited debt payoff, lowering of interest rates and an improvement in credit score. The program is intent-centric and data-driven. The algorithm rightly identifies eligible consumers based on their income, expenses and past utilization of debt and then help sanction consolidated load via lender's special purpose account. Upon consolidating, the repayment of the new loan begins with a single and reduced monthly payment.

Commenting on the lending partnership, Sachin Joshi, Head of Acquisition, Trillionloans, said, "We are elated to have partnered with FREED to create a product that is unparalleled in India's lending landscape. FREED brings its much-needed experience, insight and expertise into the creation of MAARG."

Technology partner Vineet Singh, co-founder and CEO, Castler, added "We are in agreement with FREED's vision to address toxic debt at a preventive stage and excited to have partnered them. We hope MAARG reaches out to countless distressed borrowers and helps them in their journey to achieve financial freedom for a debt-free life".