Fintech startup Finzy has received Non-Banking Financial Company(NBFC) – Peer to Peer (P2P) Lending certification from the Reserve Bank of India.
All P2P loan platforms are regulated by RBI to ensure that specific standards of operation and security guidelines are maintained.
Started its operations in 2017 in Bengaluru, Finzy connects verified borrowers looking for a personal loan with investors looking to invest. The platform acts as an intermediary between the investor and the borrower.
In April, Finzy had raised USD 1.3 million in the first round of Pre-Series A from investors in the industry and are expecting to complete the second round later this month with a pre-identified set of investors.
On receiving the certification, Amit More, Founder & CEO, Finzy said, “The P2P-NBFC license is a validation of our strong business processes, info security standards and compliance to the RBI guidelines. This is a very important milestone in enhancing our trust to investors and borrowers on Finzy.”
With this, Finzy would now compulsorily be required to maintain specific networth, set prudential and leverage norms, and also ensure fair and transparent operating principles in conduct of its business. Finzy would also have to contribute repayment track record of each and every loan to CIBIL on a periodic basis.
“Our focus on customer experience, the proprietary credit assessment algorithm and a secure digital platform has allowed us to achieve ZERO defaults in EMI repayments in our first year of operations, thereby building trust with all our stakeholders,” added Abhinandan Sangam, CTO, Finzy.
The company claims that they have had zero defaults in EMI repayments in its first year of operation, to date. With providing an average of 15.5% plus returns to the lenders consistently, Finzy plans to enter other Tier 1 cities in India this year.
Other than Finzy, the other players that are in the P2P market in India include i-lend.in, Faircent.com, LenDenClub, Lendbox.in among others. A first of its kind association was also formed by these P2P companies early this year, wherein, they have come up with self-regulatory norms.