Lending Platform Abhi Loans Raises New Funds
KNAB Finance Advisors Pvt. Ltd, a non-bank financial company has raised $4.5m (approximately Rs 35.5 crore) in a mix of debt and equity for its digital lending platform, Abhi Loans led by DMI Sparkle Fund and with the participation of angel investors Niten Malhan, Ashvin Chadha and SK Jaïn.
The fresh funds will be used to develop the technology growth of the loan portfolio. KNAB Finance is building a digitally distributed and secure lending ecosystem with its Abhi Loans product.
Founded by Deepit Singh and Mandeep Chaudhary, KNAB Finance is building a secure and digitally distributed lending ecosystem with Abhi Loans and entering the market with loans against stocks and mutual funds. The company says the loan products it offers are only available earlier in the market as high-value loan offers for high net worth individuals.
Abhi Loans provides capital to borrowers within 24 hours and any delay in repayment of the loan amount entitles the loan amount to 50% waiver of processing fees. The interest rate is fixed at 10.5% per annum for the duration of the loan, the company claims.
“One method of saving money on multiple high-interest loans, for example, is to monetize the small portfolios of mutual funds we have. From a small loan amount as low as Rs 15,000, any retail customer with a unit balance of Rs 20,000 can take a cheap loan and also opt for low interest rate debt consolidation. This reduces the long-term interest burden and makes repayment much easier,” said Mandeep Chaudhary, Founder of Abhi Loans.
The Sparkle Fund is an alternative investment fund (AIF) of the DMI group, launched in 2017, it mainly supports start-ups and fintech companies. He has invested in companies like MoneyView, Happy, YAP, Uni, Scripbox, Mobikwik and Slice, among others.