Cashkumar gets NBFC-P2P Certificate of Registration from RBI

Author: Debapama Dhar, Lender Relations
13th July 2018

Cashkumar has received a valid Certificate of Registration dated 10th July, 2018 issued by the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934. With this, we have become the first company in Bangalore to have secured an NBFC-P2P license from RBI. Let’s look at a brief journey from the past that led to where we are today.

We started our journey in Peer to Peer Lending in India from July 2016. From then on there was no looking back, as in November 2016 we were chosen as one among 10 startups in India chosen by UK Department of International Trade (UKTI), which was a joint collaboration between the governments of India and United Kingdom.

Our SEO strategies and campaigns paid off and in the month of December 2016, Cashkumar was recognized as one of the most sought out platform for Short Term and P2P loans in India. After months of effort and hard work by the team, we were recognized as a people friendly player with a MoM Growth of 25% in 2017.

Meanwhile our achievements touched a newer height when our CAGR went upto 18%. The year 2018 too seemed to be a very promising year, as due to our increased efforts for continuous improvement, we got in the eyes of investors and we were able to make our first round of funding during the second quarter which enabled us to enhance our operations multiple folds.

Having disbursed over 1200 loans and with over 250 positive customer reviews on Google and with consistent return on investment to lenders, we are poised to become the best P2P lending platform in India in a very short time.

Information About NBFC-P2P

Definitions

Peer to Peer (P2P) Lending platform: is one which connects verified borrowers who are seeking a loan to a group of registered lenders who can disburse the same and get returns on their investment in the form of monthly EMIs.

NBFC-P2P: is a registeredt non-banking institution recognized by the Reserve Bank of India, which carries out the business of P2P lending in India.

Directives of RBI which are to be kept in mind while lending or borrowing:

  • At any given point of time a lender will not be able to invest more than 10,00,000 Lakhs across all P2P Platforms
  • Lender at any given point of time can invest only upto 50,000 for one borrower across all P2P platforms
  • Total loan amount taken by the borrower at any given point of time should not exceed 10,00,000 lakhs
  • Maturity of the loans should not exceed 36 months

Benefits of being an NBFC-P2P

An NBFC-P2P shall become a member of all CICs (Credit Information Companies) and will be submitting the data to them regular intervals on a month basis. Hence, all the borrower payment details will now be monitored and recorded.

You can read the Master Directions from RBI in more detail here.

P2P Firms becoming a Boon for Borrowers and Lenders:

  • As traditional banking technique wants the customers to submit the mortgage in case of approving a loan, whereas P2P firm provides them a loan without any mortgages
  • NBFCs make it more convenient for borrowers and lenders to transact seamlessly on the same platform
  • Ideal for the under-banked population that has zero credit score and history
  • High interest rate for lenders as compared to the returns they get from mutual funds or shares
  • Lower interest rate for borrowers as compared to credit cards
  • If the amount is reinvested then the returns gets multiplied over a short period of time
  • For lenders, the platform helps in diversifying risk allows you to reinvest earnings into new loans, spreading your investments and mitigating the risk of an individual default on your portfolio.

What the future holds for Cashkumar?

We aim to consistently provide best services to our existing and new customers. We have expanded our operations over the past few months and our growth has come over in leaps and bounds. Keep following us for newer updates.

Note: The company is having a valid Certificate of Registration dated 10th July, 2018 issued by the Reserve Bank of India under Section 45 IA of the Reserve Bank of India Act, 1934.

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