LenDenClub, an online Peer-to-Peer lending marketplace for salaried borrowers, has received its Certificate of Registration (CoR) from the Reserve Bank of India (RBI), thus officially establishing itself as an NBFC-P2P.
Commenting on the same, Spokesperson, Bhavin Patel – CEO of the company, LenDenClub said, “Registration as NBFC-P2P was one of the most important stepping stone for us. This is the altogether different era for us compared to the time when we started with the hope to be regulated one day. This will help us establishing LenDenClub brand more strongly as this will boost lenders’ confidence.”
Founded in 2015 in Mumbai, LenDenClub has designed its process to ensure regulatory compliance, customer convenience, transaction transparency, and repayment support to create a business model that the company intends to use to make itself the market leader in the nascent P2P lending sector in India. Currently, the company is present in 5 cities across India; the NBFC-P2P plans to enter more cities in the near future; resulting in a Pan-India presence.
The platform offers loans over a fixed period of 18 – 36 months at a rate of interest ranging between 12.5% - 35%. The borrowers benefit the loan approval within 18 hours of the request, while disbursement within only 3 days. LenDenClub currently enjoys a borrower base of over 21000, while a lender base of more than 6100.
LenDenClub has raised $500,000 (almost Rs.3.5 crore) in equity investment from three major investors Venture Catalyst, Anirudh Damani, and an Indian venture capital fund.
in June, the startup launched an Android-based application to connect lenders with creditworthy borrowers. With the ‘InstaMoney’ application, available for Android users, users can easily get advances on their salary or an instant cash loan. The applicant merely has to confirm that they have employment and have a monthly income in excess of Rs 12000 and enter their Aadhaar number to have their application for credit processed.
Apart from LenDenClub, other players who have also received NBFC P2P certification from RBI are Monexo Fintech, Faircent, OML Technologies, BigWin Infotech (PaisaDukan.com) and Finzy.