Monexo Fintech, a peer-to-peer lending marketplace has received the NBFC P2P license from the RBI. It is among the few companies to receive the license. The only other companies to receive the license are Faircent, OML Technologies, BigWin Infotech and Finzy. It is also looking to invest in IT and infrastructure to provide better services to its clients.
Monexo Fintech was founded by Mukesh Bubna, Sonal Bengani and Sundar M in 2016 with its headquarter in Mumbai. It aims at bringing the borrowers and lenders together to make credit more accessible and investing more rewarding. Monexo Fintech provides a completely online financing model that lets borrowers get loans at attractive interest rates along with flexible terms. Also, lenders get the opportunity to diversify their portfolio by investing in different asset classes.
“We have begun talking to investors. With the RBI regulation in place, there is much more positivity around the P2P segment. We are planning to raise capital this financial year,” Bubna said.
P2P lending lets people borrow directly from other people without the intervention of any financial institution. This will help the borrowers who are not eligible to get loans from any financial institution.
Monexo Fintech currently has around 100000 registered borrowers along with 4000 registered lender. Total loans of ₹20 crores have been processed. It is the first P2P platform to provide its investors with an escrow account along with the option to auto-invest. It also provides insurance with Monexo’s Credit Shield, including a job loss insurance cover. Lenders can earn an interest rate of 13% to 32% per annum.
The P2P lending industry is expected to be worth about $4-5 billion by 2023. It will be helpful for the SMEs in securing loans along with the individuals out of the ambit of financial institutions. There are many other players entering the digital lending space, Flipkart had recently applied for NBFC license as well. Faircent, Finzy and LendingKart are amongst the few competitors in the same space.