Bangalore: Bangalore based Milaap; an online micro lending platform which enables anyone around the world to lend money to the working poor in India through a website is raising $1.2 million for investment from US and Singapore investors.

There were few other funding activities in this firm from various investors including Unitus Seed Fund which contributed $100,000 in February, 2012. This peer to peer (P2P) micro lender was founded in 2010 by Sourabh Sharma, Anoj Vishwanathan and Mayukh Choudhury calling it Milaap.com. No information is specifically provided about the investor and also on how this funded amount will be utilized by this firm.

This team has helped many borrowers in desperate need of money by raising over $200,000 from various lenders with 100 % repayment rate. The loan is provided to the poor working class group in India for them to have continuous access to basic amenities including food, clean drinking water, toilets, education, renewable energy and also to generate income generation opportunities.

Milaap has actively raised $250,000 in equity capital until recently and the Reserve Bank of India has categorized it as non-profit micro institution which would by default bring it under a proposed legislation to regulate micro lenders.

According to Mint, such Indian P2P (Peer to Peer) platforms provides loan from Rs 100 to Rs 30,000 which has to be repaid in the span of 12-18 months to the lender. Once the complete payment is made, lenders are advised to redeploy the money for such other needy people.  India also has few other P2P service providers like RangDe and Samrudhi Microfin Society