Cashkumar first Bangalore based firm to receive NBFC-P2P certification from RBI
Cashkumar, among the only P2P lending platforms focused exclusively on short-term loans for salaried individuals, today announced that it is the first Bangalore based firm to receive the NBFC-P2P license from RBI (Reserve Bank of India). The license marks Cashkumar’s entry to a set of four to five other leading fintech firms that have received the accreditation, ever since the national regulatory body announced guidelines for the fast-growing Peer-to-Peer (P2P) lending space in October 2017.
In the Indian P2P lending ecosystem, Cashkumar has carved a unique niche for itself, by focusing only on providing loans between 20,000 to 1 lakh with tenures of 3 to 12 months and catering only to salaried individuals. In a short span since the 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 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 45 Crores by end of FY 2018-19.
Dhiren Makhija, Co-founder of Cashkumar says, “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 acknowledgment of our strong business model, systems, processes and regulations that we have put in place. Our recent seed round of 5 Crores, has helped us scale operations and now with the license (CoR) from RBI, we will focus on further strengthening of our credit underwriting and technology. The license will also help in instilling confidence amongst lenders which in turn will help scale our lender base. 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”.
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 according to a recent Morgan Stanley report.
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