Abhi Loans, a product of KNAB Finance, plans to utilize the new funds for technological development and expansion of the loan book
Abhi Loans’ unique selling idea is the speedy approval and distribution of loans against collateralized securities
It also enters the market with loans made against mutual funds and shares
KNAB Finance Advisors Private Limited, a licensed non-banking financial institution (NBFC) which is registered by the Reserve Bank of India (RBI) it is raising $4.5 Mn via an equity and debt equity rounds for its online credit platform Abhi Loans.
The round of financing was managed by DMI Sparkle Fund. It also witnessed the participation of other notable angel investors, including Niten Malhan Ashvin Chadha and S K Jain among others.
The company intends to utilize the money to develop technology and to expand the loans book. KNAB Finance is building a digitally secured and distributed loan system by offering Abhi Loans.
Established by Deepit Singh and Mandeep Chaudhary, Abhi Loans’ unique selling point is its rapid approval and distribution of loans against pledged securities as collateral. Abhi Loans is also entering the market by offering the ability to lend against shares and mutual funds.
According to KNAB Finance, while such products for lending were initially offered, they were loans with high-value for wealthy individuals. In contrast, Abhi Loans offers the product to consumers who want to purchase smaller amounts of loans starting at INR 15,000.
Abhi Loans claims to provide the borrowers with capital within 24 hours. Any delay in repayment of the loan amount is a right to the borrower to a 50 percentage reduction on the processing fee. The interest rate is set at 10.5 per cent per annum for the duration of the duration of the loan.
“Loans on securities” will become the very first product we offer in our portfolio. It will be the basis for a variety of other innovative ways to solve problems,” said Singh, the founder Abhi Loans. Abhi Loans.
The Sparkle Fund, an alternative investment fund (AIF) part of the DMI Group, was launched in the year 2017. It invests in startups at the beginning of their development and fintech firms.
Lending Tech Ecosystem In India
With India’s overall fintech market opportunity estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025, lending tech is likely to account for 47% ($616 Bn) in the broader fintech segment, as per an Inc42 report.
Although there are some regulatory restrictions regarding lending technology sector but the first set of guidelines for lending online issued this week from the Reserve Bank of India (RBI) has lifted certain regulatory hurdles which kept the market in limbo for a long period of.
In the recently announced regulation framework for lending institutions controlled by central banks, it has not only outlined the requirements for business conduct, but has stressed the importance of protecting data of the borrowers.
Some other announcements for fundraising in the sector of digital lending in the last few days include NBFC and the lending startups in the tech sector Lendingkart, which secured 50 crore through a credit financing round led by InCred Capital and Yubi.
Fintech-based lending company CredAble also received $9 million through Axis Bank and OAKS Asset Management earlier in the month. In addition, the fintech startup that lends to businesses Credit Fair raised $10 Mn through a combination of debt and equity rounds.