Work Collection
OkLoan
Overview
OkCredit, a digital bookkeeping platform, has successfully provided a digital alternative to traditional ledgers, enabling small and medium-sized enterprises (MSMEs) across India to manage their credit and payment transactions. Recognising that many of its merchants were also struggling with accessing formal credit due to a lack of credit history or collateral, OkCredit launched OkLoan to offer flexible loan products tailored to the needs of MSMEs
My Role
As the Product Designer, I was responsible for conducting user research to understand merchant pain points and expectations for loan-related workflows, analyzing user data to optimize designs, and creating intuitive UX for the loan application and repayment flows. I worked closely with the Product Owner and Product Manager to align designs with business and user goals, and collaborated with backend, frontend and QA team to review and ensure the accuracy and functionality of designs.
Target User Parameters
OkC Super Users: Have more than 40 connections on app, add at least 250 transactions on app, average transaction value is 1500, is active on app since last 45 days and adds around 75% of transactions on weekdays
Business Categories: Eatery/Bakery/Pan Shops, Kirana/Grocery/Condiments Store, Medical
Existing Activity: Merchants already using OkCredit to manage their supplier payments to ensure a decent credit score
Credit Recovery cycle of Merchant: To ensure low NPA and timely repayment
Design Process
Research & Requirement Gathering
User Interviews
Conducted in-depth interviews with 15 merchants to understand their financial practices, pain points, and loan requirements
Learnings
Need working capital loans at affordable rates
Around `32% were willing to pay more than 1.5% per month
30% merchants had business registration and were willing to get one if it gets them credit
They take informal loans from friends and family
They are not sure of their credit score
Surveys
Distributed structured surveys to collect data on user needs, preferred loan amounts, repayment terms, and acceptable interest rates.
Learnings
Loan Demand: ~60% of super users and 55% of normal users seek loans, primarily for business expansion (85%), while <1% need loans for daily working capital.
Loan History: ~40% of super users and 44% of normal users have taken loans, mostly from relatives, friends, or parallel loan channels, indicating gaps in formal banking accessibility.
Loan Amount Preference:
₹50,000 - ₹100,000: Needed by 60% of super users, 40% of normal users.
Below ₹20,000: Sought by 16% of super users, 40% of normal users.
Repayment Capacity:
<₹10,000/month is preferred by most.
₹2,000 - ₹5,000/month: Comfortable for 43%.
₹5,000 - ₹10,000/month: Preferred by 27%.
Repayment Tenure: 70% prefer >3 months, while 30% prefer <3 months.
Interest Rate Sensitivity:
Only 14% are willing to pay >2% per month.
18% accept 1.5%-2%, while 32% are open to >1.5%.
Loan Recurrence: Users who have previously availed loans are more likely to seek loans, with most preferring to take loans twice a year.
Competitive Analysis: Studying loan UX flows of banks and apps in the market
Data Analysis: Analysed user interaction data on the OkCredit platform to understand behaviour patterns and platform usage.
User Persona
Problem Statement
How might we enable MSMEs with limited credit history or collateral to access formal credit, manage cash flow effectively, and benefit from an optimized initial credit line while offering tailored financial solutions that meet their diverse business needs?
Exploring Solutions
Business Information Requirements
PAN - Number
Aadhar Number and OTP Verification
Bank Account Details
Personal Information - DOB, Fathers/Spouse Name, Gender
Location and SMS Permission
e-Signature on Loan Agreement
Transparent Loan dashboard, repayment flows, statements and contract
OkCredit Design Philosophy
Simple User Interface
OkCredit Brand Guidelines
Ask for one type of information at a time
Help user
Educate user
Transparency
Error Handling
Design Parameters
Basic User Flow
Detailed User Flow
High Fidelity Designs
User Response to OkLoan
Since the launch of our loan services, we have seen significant adoption and engagement. On 29th September 2021, we onboarded our 100th customer, marking the beginning of a strong growth trajectory. By 11th November 2021, we had successfully disbursed 400 loans via NBFC, reaching a loan book size of 1 crore, with 72% of applicants being cKYC compliant. Moving forward, on 9th December 2021, we achieved a milestone of 1,000 loan disbursals.
A major milestone was reached on 22nd December 2021, with the launch of the repeat loan feature, where 96 out of 165 eligible customers were offered a second loan based on their repayment behavior and approval criteria. This offer, standardized at ₹50K over ~6 months at ~35% interest, had a strong 23% adoption rate within the first day, with 22 customers opting in immediately.
By 7th April 2022, we had cumulatively disbursed $2 million in loans, reflecting increasing customer demand. On 8th June 2022, we introduced flexible loans for 450 users and a processing fee for 225 users, streamlining our offerings.
Our data shows consistent month-on-month growth in disbursement volumes, with repeat users forming a key segment
Our data shows consistent month-on-month growth in disbursement volumes, with repeat users forming a key segment. As seen in the Monthly Disbursal vs User Category chart, repeat users (blue) are steadily increasing, indicating strong retention. At the same time, default rates saw an increase post-June 2022, peaking in early 2023 before stabilizing due to collection teams efforts. The profitability trend reflects steady growth, with periodic spikes aligning with increased disbursement months.
Currently, our total disbursal volume stands at ₹352 Cr, with 71.6% of the principal repaid, 26.1% PoS (Past Due but not defaulted), and 2.3% defaulted amount. As we continue refining our approval processes and loan offerings, our focus remains on maintaining high repayment rates while expanding access to credit.
Over the years different strategies have been used to reduce overdue loans
Flexible Loans
What We Observed
We started by offering ₹25K loans, but users demanded higher loan amounts.
Not all users were eligible for larger loans, leading to frustration and limited accessibility.
Users also needed flexibility in repayment to better manage their cash flow.
Lack of transparency in loan breakdowns could impact trust and decision-making.
Problem Statement
How might we provide higher loan amounts while ensuring eligibility-based approvals and offering flexible repayment options to build trust and transparency?
Solution
Created an eligibility-based loan journey:
Users applied first, and based on their creditworthiness, we offered loans up to ₹2L
Introduced flexible repayment options:
Allowed merchants to pay daily, weekly, or monthly, based on their cash flow.
Enhanced transparency:
Clearly displayed loan amount, fees, instalment structure, and other charges upfront.
Impact
Higher loan accessibility, enabling more users to borrow larger amounts based on eligibility.
Improved repayment success due to customized repayment schedules.
Increased user trust and satisfaction, as borrowers had full transparency on loan terms.
Better financial planning for merchants, helping them manage their payments smoothly.
Autodebit Mandate
What We Observed
Defaults peaked in late 2022 (~4%), despite merchants having funds.
Many borrowers forgot to make payments, leading to overdue amounts.
Notifications helped reduce missed payments, but some users still defaulted.
A collections team was set up to send reminders, improving repayment rates.
Problem Statement
How might we ensure that merchants pay their loan instalments on time without relying solely on manual reminders?
Solution
Mandate-based Auto-Debit: Introduced a system where merchants authorized automatic deductions for missed payments.
Incentivization: Encouraged adoption by offering cashback
Impact
Default rates stabilized at 2-3% post-2023, showing better risk management.
71.6% of loans repaid, highlighting a strong repayment culture.
50% adoption of auto-debit, proving its effectiveness in reducing missed payments
Udyam Registeration
What We Observed
50% of users had business registrations (GST, Gumasta, or Udyam)
Many merchants were willing to register but found the government website process complex and time-consuming.
Lack of registration limited their loan eligibility and access to MSME benefits.
Problem Statement
How might we simplify the business registration process for merchants while educating them about MSME benefits, so they can qualify for higher loan amounts and financial support?
Solution
Built a user-friendly Udyam registration flow within our platform to simplify the process.
Educated merchants about MSME benefits, including easier access to loans, subsidies, and government schemes.
Provided step-by-step guidance to help users complete registration smoothly.
Enabled faster document verification and loan approvals for registered businesses.
Impact
Higher adoption of business registration, allowing users to access financial support.
Increased eligibility for higher loan amounts, improving borrowing capacity.
Faster loan approvals due to structured business verification.
Merchants gained access to MSME benefits, helping them grow their businesses sustainably.
Improved borrower credibility, reducing lending risks for the platform.