Bengaluru – February 04, 2025: Newtap Finance Private Limited (NFPL), a digital-first NBFC, has received its first rating, with India Ratings and Research (a Fitch group company) assigning ‘IND BBB’ ratings with a Stable outlook to both its non-convertible debentures and bank loan facilities.
The rating reflects Newtap Finance’s robust technology-driven lending model and partnership with CRED, which maintains a 23.7% stake in the company. At the core of NFPL’s operations is a sophisticated multi-layered risk assessment framework that combines automated pre-approval processes with real-time underwriting decisions.
The company’s risk management approach combines selective pre-approval with real-time credit assessment. Customers are first whitelisted through NFPL’s proprietary risk models, followed by comprehensive bureau checks at the time of loan application. This two-stage validation ensures rigorous creditworthiness evaluation, supported by continuous portfolio monitoring through advanced analytics. The effectiveness of this approach is evidenced by Newtap’s strong asset quality, with a gross NPA of 1.1% as of December 2024.
Key rating strengths highlighted by India Ratings include:
- Advanced technology-based lending platform with real-time underwriting capabilities
- Strong risk management through pre-approved lending to high credit score customers
- Strategic alignment with CRED platform, providing access to a quality customer base
- Experienced management team with proven expertise in financial technology
The company has demonstrated strong growth while maintaining asset quality, with a portfolio of INR 11,416 million in assets under management as of December 2024. The rating also factors in Newtap Finance’s strategic focus on salaried and self-employed individuals with strong credit profiles.