KNAB Finance Advisors Pvt. Ltd, a non-banking financial company has raised $4.5 million (around Rs 35.5 crore) in a mixture of debt and equity for its digital lending platform, Abhi Loans led by DMI Sparkle Fund and with participation from angel investors Niten Malhan, Ashvin Chadha and SK Jain.
The fresh funds will be used to develop the technological growth of the loan book. KNAB Finance is building a digitally distributed and secure loan ecosystem with its product Abhi Loans.
Founded by Deepit Singh and Mandeep Chaudhary, KNAB Finance is building a digitally distributed and secure loan ecosystem with Abhi Loans and is entering the market with loans against shares and mutual funds. The company says the lending products it offers are available earlier in the market only as high-value loan offerings for high networth individuals.
Abhi Loans provides capital to borrowers within 24 hours and any delay in reimbursement of the loan amount entitles the latter to a 50% waiver on the processing fee. The rate of interest is fixed at 10.5% per annum throughout the loan tenure, the company claims.
“One method to save money on several high-interest loans, for instance, is to monetize the small mutual fund portfolios we have. Starting with a small loan amount of 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 debt consolidation. It reduces the interest burden in the long run and makes repayment much easier,” said Mandeep Chaudhary, founder, Abhi Loans.
The Sparkle Fund is an alternative investment fund (AIF) of the DMI Group, launched in 2017 it primarily backs early-stage startups and fintech companies. It has invested in companies like MoneyView, Happy, YAP, Uni, Scripbox, Mobikwik, and Slice among others.
