Peer-to-peer lending platform Oxyloans is targeting to facilitate the disbursement of ₹100 crore loans in 100 days beginning March 1.
Launched in November, the fintech platform of the Hyderabad-based start-up connects lenders and borrowers. The firm, which neither mobilises deposits nor disburses loans, earns revenue from the commission — 1.5% from lenders and 2.5% from borrowers — it charges.
Expressing confidence in meeting the target of the ‘Oxyloans Challenge,’ founder and chief executive officer Radhakrishna T. said asset finance picked up after the Centre’s decision in November to demonetise high value currency notes. Many people were using the money lying idle to disburse loans.
Rate of interest
The loans disbursed through the platform are typically short-term, from 6 months to 11 months, and the rate of interest ranges between 14% to 36%.
The company provides a host of services in terms of assessing the risk profile of the borrower, he said, adding that various loans — personal, for business, for start-ups, and for small and medium enterprises — are offered.
The company, Mr. Radhakrishna said, had during the last two weeks received 270 loan applications with a total loan requirement of ₹250 crore.
On the regulations governing the business in the country, he said though the Reserve Bank of India had proposed peer to peer lending regulations last April, “nothing has moved since.” There are around 30 start-ups in the P2P lending business in India, he said.
