Bangalore-based digital lending platform Abhi Loans (KNAB Finance Advisors Pvt. Ltd.) has raised $4.5 million (approx. Rs 35.7 crore) in funding to develop technology and grow its loan book.
DMI Sparkle Fund led the round with participation from angel investors including Niten Malhan, Ashvin Chadha, and S K Jain, among others.
Deepit Singh, Mandeep Chaudhary, and Ranjan Sharma co-founded Abhi Loans in 2015. The fintech startup deploys technology to develop and implement convenient and pertinent financial solutions. It aims to build and deliver quick credit solutions for the common Indian.
According to the company’s statement, Abhi Loans’ USP is rapid loan approval and disbursement of loans against securities pledged as collateral. The startup said customers can get a loan upto 65% of the value of shares held and upto 75% of the mutual fund holdings at a fixed interest of 10.5% per annum.
“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 customers with a unit balance of Rs 20,000 can take a cheap loan and also opt for low-debt consolidation. It reduces the interest burden in the long run and make the repayment much easier,” said Mandeep Chaudhary, Founder of Abhi Loans.
“We are excited to work with the team at KNAB to help build out an innovative new product suite which takes us closer to our dream at DMI of enabling financial inclusion at scale across India,” said Shivashish Chatterjee, co-founder of DMI Group.