Mumbai: IndiaMoneyMart (IMM), a digital lending marketplace has launched its App to allow lenders and borrowers to lend and borrow money independently. IMM has the PAN-India operation and has partnered with the number of financial institutions to fulfill the need of loan (personal, home and small business) of an individual.
The app is freely available in android to download. For iPhone users, the facility will be available by late October. The app makes loan application faster and paperless in which lenders can select borrowers to fund and send loan proposals online. The duo are required to download the app, fill the registration form and upload KYC documents such as Aadhar Card, PAN Card for the proprietary underwriting tool to assess the creditworthiness by listing them on loan platform.
IndiaMoneyMart.com is a robust technology driven marketplace-lending platform enabling financial empowerment and control over investment decisions to common people. Peer-2-Peer Investors can expect returns from 12% to 25% annually on their investments. The platform also offers assisted portfolio management services, if required. IMM aims to keep the interest rate as competitive as possible for the loan seekers.
The app is useful for people seeking alternative sources of funding to meet emergency requirements, not serviced by Banks and other traditional lenders. For most borrowers underestimating the debt pay-off time or missing payments is dangerous in case of private loans. They end up paying up to 60% interest on the principal amount on a revolving basis and enter into a debt trap.
Mr. Mahendra Agarwal (CEO, IndiaMoneyMart) remarks, “India is at the cusp of financial inclusion as technology has enabled access to information and markets at a startling level. It has forced markets to become more transparent in their pricing strategy. This applies to financial industry which has been operating in isolation so far with little clarity over lending practices and fairness of the returns offered to its depositors. IndiaMoneyMart is solving the problem to make loan management and pricing of loans transparent, simpler and efficient by offering the choice to borrowers to reject loan proposals and lenders to do the intensive evaluation of risk and return pay off before making investment decisions. It is a technology platform based on stringent due diligence, proprietary credit underwriting and end-to-end loan management solutions for individuals and businesses.”
This model has always been practiced in the Indian market between close-knit communities and peer-2-peer lending app IndiaMoneyMart seeks to formalize these transactions and increase the scope of opening the market to a larger set of credible loans seekers and businesses and investors.
Globally, Peer -2-peer lending system has shown consistent growth in countries like United States, United Kingdom and China. The marked growth in these countries is of 50%, earned in the last five to seven years. Companies like LendingClub, Prosper, Ratesetter, SoFi are already expanding in niche segments and enabling borrowers and investors realize their financial objectives.
With Peer-2-Peer lending gaining traction in India, RBI has announced that it recognizes the P2P lending platforms at par with NBFCs. A PwC paper estimates that the market size in India is likely to touch USD5 Billion by 2020, thereby a huge opportunity for growth and capitalization in the alternative credit markets.
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