Raj Tulshan of Loan Mantra On How They Are Helping To Promote Financial Inclusion

Most of us take it for granted that we can open a bank or a credit card. But the truth is, according to the World Bank, close to one-third of adults — 1.7 billion individuals — are still unbanked and have no access to a transaction account. About half of unbanked people include women in poor households in rural areas or out of the workforce. What can be done and what is being done to promote more financial inclusion? To address this Authority Magazine started a new series about Companies Helping to Promote Financial Inclusion. As part of this series, I had the pleasure to interview Raj Tulshan, the Founder and Managing Member of Loan Mantra, a financial advisory firm.

Neeraj (Raj) Tulshan is the Founder and Managing Member of Loan Mantra, a financial advisory firm with best-in-class and proprietary fintech, BLUE (“Borrower Lender Underwriting Environment”). Loan Mantra, Powered by BLUE, is next-level finance: a one-stop-shop for business borrowers to secure traditional, SBA or MCA financing from trusted lenders in a secure, collaborative, and transparent platform. Clients turn to Raj because they know he will always pick up the phone and offer unparalleled financial counsel in a remarkably human — even friendly — way.

Thank you so much for doing this with us! Before we dig in, our readers would like to ‘get to know you’. Can you tell us a bit about how you grew up?

I come from a long line of business owners. My father had his own business and he struggled 7 days a week to try and grow it. He didn’t only deal with micro impacts, but also macro issues. Even if you’re extremely good at what you do, which my father was, everything impacts a small business. And pre-dot.com, access to information was limited.

Growing up in Calcutta, one of the biggest problems my father had was getting a loan. Back in the day, you could not get a loan, even for a small amount like $5,000. You would have to personally know the banker to be successful, and it was almost impossible. Half the businesses never succeeded due, in part, I’m guessing, to lack of loans and financing for their companies. When I came to the US, I got a student loan and couldn’t believe it.

My wife also navigated her way through her own struggles, experiences and financial crises growing up in South Carolina and New Jersey. Her family started many businesses and met unique sets of problems. My father-in-law is Italian American, and my mother-in-law is a Polish-Ukrainian American. They worked in construction, operated a bed and breakfast, and, now, wine sales.

Small businesses today should have everything they need to operate financially in one place. But the commercial lending system is fragmented. Business owners must often go to 10 places to get a loan. That is why I founded loanmantra.com to make the process streamlined and easy. I saw a huge gap in the marketplace and problems that needed to be solved.

Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?

The Biography of Walt Disney taught me how to pursue and achieve joy. Even though he failed multiple times, he kept at it until he achieved success. He was very shy and insecure, but he worked tirelessly with his family, and at the end of the day, he and his brother Roy made it happen.

Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?

In keeping with the theme, I’ll say: “It all started with the mouse.” Walt Disney reinvented the business of happiness. . No matter what age, the joy continues. He doesn’t claim to be the hero, he makes the client and consumer the hero by offering experiences that foster connection.

How do you define “Leadership”? Can you explain what you mean or give an example?

Juggling comes to mind. You’re not just dealing with one aspect of one the business, you are thinking about — and managing — multiple things simultaneously, including the impact to clients, planning based on today’s markets — all with a big smile on your face.

Leaders see the end goal beyond the small noises. Put the small noises in the background and let them go.

Can you share the most interesting story that happened to you since you began your career?

I think my career, generally, is interesting. The biggest thing that happened was when I came from Calcutta for university and then went to work at Merrill Lynch. I was in awe — it was one of the most significant professional experiences I’ve ever had. It was high ego, high energy, and high learning. I worked with some of the best people, who were all focused on growing the company and the clients. At that point, I never thought I would start my own company. The best part of that opportunity was that I got to work in New York City, and it was so interesting. Recently, my company was the sponsor of a large major FinTech conference at the Javits Center in Manhattan, where only some years before I had taken my accountancy and Series 7 & 79 exams. That moment was full circle for me.

Ok, thank you for all that. Now let’s move to the focus of our interview. Let’s start with a basic definition so that all our readers are on the same page. What exactly is Financial Inclusion?

The first hinderance to Financial Inclusion is lack of financial education and access to information. One of the biggest things I come across is that small and medium sized businesses (SMBs) are reliant on service providers to provide information. These companies work with socially disadvantaged people all the time, but don’t have the necessary information collected in one place. So, these people are faced with financial jargon, and they don’t know what it means.

People with means often work with financial advisors, and they are at such an advantage. We can become more inclusive from the very beginning, when an individual is learning about their options.

What does it mean to be “unbanked”?

Someone who does not have — or does not want to go through — a financial institution. We usually think of poor and marginalized groups who are unbanked. Often, these people don’t have access to credit because their scores are low. But Millennials and Gen Z are more and more unbanked because of their lifestyle and the market: they haven’t bought houses or cars yet and are more comfortable using technologies that are decentralized or outside their parent’s financial systems.

For the benefit of our readers, can you explain some of the typical reasons why a person might be unbanked? Why can’t they just walk into the local bank and open an account? Why can’t they simply open an account online?

For one thing, but it’s a major factor, no institution has offered them a simple bank account. When an “unbanked” individual goes to cash their paychecks, they aren’t asked whether they want to open a deposit account.

There is also an “unbanked” generation that may not readily use the fiat financial system, but when they cross a certain age, they are unable to get a loan because they don’t have a credit score. Your credit report reflects your financial character.

In fact, 94% of Millennials are willing to use another FinTech technology versus a bank or institution. Often, the only credit scores they have available are tethered to their student loans.

Can you tell our readers a bit about your work to promote Financial Inclusion? Without saying names, can you share a story about a person who was helped by your initiative?

We work with a lot of first-generation business owners — around 60% of our business — and educate them about important financial topics. We advise them about how to start the funding process. A financial education may be the most important thing that we offer, even if our clients would describe that differently.

Loan Mantra democratizes the commercial funding process by making applying for business loans easy and accessible to businesses of all sizes through a one-stop secure portal that streamlines the process. We also work to secure government funding for businesses through programs from the Small Business Administration like the EIDL and RRF.

We work with a variety of businesses, including start-up, multi-generational, small, medium, large, minority, Veteran, woman-owned, small, disadvantaged business, etc. Regardless of the circumstance, our attention, purpose, and intention are all focused on each client’s success.

Our entire team is friendly, responsive, and respectful. And we speak diverse languages — including English, Spanish, Hindi, Bengal, Hospitality, Laundry, and Manicure — so we can work with a diverse group of clients.

This may be obvious to you, but it will be helpful to spell this out. Can you articulate to our readers a few reasons why it is so important for businesses to promote financial inclusion?

Financial Inclusion leads to the betterment of our economy and our society. Once someone is deprived of this, they are shut out of the workforce. Then, there is a downward spiral. Give someone access to financial resources and education — and they will work their way up. Block access and you will see them go down.

Ok. Here is the main question of our discussion. You are an influential business leader. Can you please share your “5 Steps Businesses Should Take to Promote Financial Inclusion”? Kindly share a story or example for each.

1. Be open to working with everybody, no matter how small the transaction. I started my business with one small, single account that has grown exponentially over the years.

2. Listen to what small businesses have to say. We work with a variety of small businesses — and many first-generation businesses — and they have a lot to share and offer to the SMB ecosystem.

3. Start with an inclusive company culture. Our culture is inclusive. We work well with different people, cultures and communities. The reason Loan Mantra has been so successful is that we relate to very underserved communities, minorities and various age sectors.

4. Speak the language. Drop the financial jargon and work on a personal level. Simplify the terms you’re using and make it understandable and relatable.

5. Acknowledge room for growth. We don’t know what we don’t know. It’s wise to stay open to additional thought leadership to expand and share our knowledge base in a diverse way to grow together and learn.

You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

We have simplified the jargon working to break the barriers and work to empower people. We are multi-faceted and offer a multipronged approach with one simple solution. We want to provide equal access to funding to everyone through a one-stop portal at loanmantra.com.

Is there a person in the world, or in the US, with whom you would like to have a private breakfast or lunch, and why? He or she might just see this, especially if we tag them. :-)

Vandana Shiva is an inspiring global activist who works tirelessly to save our forests, farms and protect seeds and local eco-systems that feed us. She is not afraid to stand against large corporate interest and speak on behalf of the people.

Senator Tim Scott (R-SC), because he is an advocate for small business that is committed to the changes that business needs. What he has done so far has been exceptional

How can our readers further follow your work online?

Come and use our free resources at loanmantra.com. There are useful articles, blog posts and information. If you need something and don’t see it, please let us know. We’re also on Linked-in, Facebook and twitter.

Thank you for these fantastic insights. We greatly appreciate the time you spent on this.

About The Interviewer: Jason Hartman is the Founder and CEO of Empowered Investor. Jason has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. Empowered Investor helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason’s Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs. Through Jason’s podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind.

Starting with very little, Jason, while still in college at the age of 19, embarked on a career in real estate. While brokering properties for clients, he was investing in his own portfolio along the way. Through creativity, persistence and hard work, he earned a number of prestigious industry awards and became a young multi-millionaire. Jason purchased a California real estate brokerage firm that was later acquired by Coldwell Banker. He combined his dedication and business talents to become a successful entrepreneur, public speaker, author, and media personality. Over the years he developed his Complete Solution for Real Estate Investors™ where his innovative firm educates and assists investors in acquiring prudent investments nationwide for their portfolio. Jason’s sought after educational events, speaking engagements, and his popular “Creating Wealth Podcast” inspire and empower hundreds of thousands of people in 189 countries worldwide.

While running his successful real estate and media businesses, Jason also believes that giving back to the community plays an important role in building strong personal relationships. He established The Jason Hartman Foundation in 2005 to provide financial literacy education to young adults providing the all-important real world skills not taught in school which are the key to the financial stability and success of future generations. We’re in a global monetary crisis caused by decades of misguided policies and the cycle of financial dependence has to be broken, literacy and self-reliance are a good start. Visit JasonHartman.com for free materials and resources.