Hyderabad-based i-lend, an online peer-to-peer lending platform is all set for an expansion plan pan-India and looks to raise about Rs. 4-5 Cr., founder director Shankar Vaddadi told ET.
Started by Shankara Vaddadi, i-lend connects borrowers who are in need of money to lenders who are ready to invest for higher returns. In simple words, it is a form of crowdfunding platform with financial returns. The company had started in 2013 with Rs 2.5 Cr. capital.
i-lend registers borrowers for personal loans from Rs 25,000 to Rs 5 lakh for duration of 6 – 36 months and a lender can invest as low as Rs 10,000. The credit worthiness of the borrowers is being judged by the service providers. As of now, i-lend has processed 380 loans for Rs 3 Cr.
Speaking on the development, Vaddadi said “The company is waiting for Reserve Bank of India to announce the final peer-to-peer lending norms before it takes steps towards building presence across the country.” It needs people at all the centres before launching all-India presence since it does physical verification of borrowers before disbursement.
The RBI proposed to regulate P2P lending platforms as a separate category of non-banking finance companies. When the final guidelines come in, the regulator may say that all transactions between borrowers and lenders need to be done through banks.
Vaddadi “i-lend platform allows three investors to come together and lend money to a single borrower. It has kept i-lend has kept borrowing rates in the range between 12% and 24%. The rate is payable by to borrower to the lender. I-lend gets 3% processing fee from borrowers and 1% fee from lenders registered with it.”