Cashkumar first Bangalore based firm to receive NBFC-P2P certification from RBI
New Delhi, July 19 (KNN) Cashkumar, a P2P lending firm based in Bangalore, has become the first city based firm to receive the NBFC-P2P license from RBI (Reserve Bank of India).
With this accreditation, Cashkumar has made an entry to a set of four to five other leading fintech firms that have also received the accreditation from RBI to commence Peer to Peer (P2P) lending business in India.
In the Indian P2P lending ecosystem, Cashkumar has carved a unique niche for itself, by focusing only on providing loans between Rs. 20,000 to 1 lakh with tenures of 3 to 12 months and catering only to salaried individuals.
In a short span since inception of P2P lending, Cashkumar has emerged as a leader within this niche, with 2 lakh+ applicants and more than 1300 loan disbursals worth over Rs.6 crores.
With the RBI license in place, Cashkumar will now further expand its operations to grow to 10000+ lenders and target loan disbursals worth Rs. 45 Crores by end of FY 2018-19.
Dhiren Makhija, Co-founder of Cashkumar said “Despite being a more recent entrant in this space, the fact that we are among the first few firms to have received the license (CoR) from RBI is an acknowledgement of our strong business model, systems, processes and regulations that we have put in place.”
He said our recent seed round of Rs. 5 Crores, has helped us scale operations and now with the licence (CoR) from RBI, we will focus on further strengthening of our credit underwriting and technology.
The licence will also help in instilling confidence amongst lenders which in turn will help scale our lender base, he added.
Besides, he said our customer centric approach will continue to emphasize on introducing technology-led innovations and making financial borrowing for salaried individuals an easy and fast task.
According to a recent Morgan Stanley report, P2P lending is still at a nascent stage in India and has disrupted the way people avail credit. With the RBI guidelines for the sector, the industry has formal recognition and no longer needs to operate in a regulatory grey area.
This is expected to further accelerate growth within the space and the Indian P2P lending industry is estimated to grow to 4-5 billion USD by 2021, report added.