New Delhi [India], August 17 (ANI/SRV): KNAB Finance Advisors Private Limited, a regulated NBFC registered with RBI, has successfully raised $4.5 million in debt and equity for its digital lending platform -Abhi Loans. DMI Sparkle Fund led the funding round along with other prominent angel investors as Niten Malhan, Ashvin Chadha, S K Jain and others.
KNAB Finance offers quick credit solutions to take care of the immediate need for liquid funds in times of cash crunch. The funds raised in the current round will be allocated for technology development and the growth of the loan book.
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. Such lending products were earlier available in the market only as high-value loan offerings for High-Net-Worth Individuals. Abhi Loans is now offering the product to retail investors for smaller amounts starting from Rs 15,000. Borrowers can use the loan amount to fulfil needs for immediate and contingent liquidity.
Abhi Loans' USP is rapid loan approval and disbursement of loans against securities pledged as collateral. One can receive the money needed in 24 hours or less. Any delay in the reimbursement of the loan amount entitles the customer to a 50 per cent waiver of the processing fee. Besides, the company offers low-interest rates and high LTV proportional to the value of units pledged. For instance, one can get a loan of up to 65 per cent of the value of shares held and up to 75 per cent of the mutual fund holdings. The rate of interest is fixed at 10.5 per cent* p.a throughout the loan tenure. Also, there are no prepayment charges for making full repayment of the loan before the end of its tenure. Abhi Loans promises the quick and convenient delivery of inexpensive credit with convenience to meet sudden needs of funds.
Abhi Loans is the brainchild of Deepit Singh and Mandeep Chaudhary. Deepit, a member of the Sara group, has managed large teams in entities operating in diversified sectors. Mandeep, a veteran with over 24 years of expertise in banking and financial services, has played a pivotal role in launching KNAB Finance Advisors Private Limited.
"Abhi Loans offers quick, flexible, convenient and affordable credit solutions for mass retail clients, which can be delivered digitally. Loans against securities will be the first product in our portfolio. It will lay the foundation for many more innovative solutions," says Deepit Singh, Founder, Abhi Loans.
Shivashish Chatterjee, Co-founder of DMI Group, said, "We're 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."
"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-interest debt consolidation. It reduces the interest burden in the long run and makes repayment much easier." says Mandeep Chaudhary, Founder, Abhi Loans.
Abhi Loans is a product of KNAB Finance Advisors Private Limited, a regulated NBFC registered with RBI. The company deploys technology to develop and implement convenient and pertinent financial solutions. It is aiming to build and deliver quick credit solutions for the common Indian.
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