P2P lending platform Monexo partners with IDBI-Trusteeship to launch in India06 September, 2016
Monexo, an Online Lending Marketplace, brings global best practices to India.
Chennai, India: Online lending marketplace, Monexo Fintech Pvt. Ltd., today announced a partnership with IDBI Trusteeship Services Limited (ITSL) in the run up to the platform’s upcoming launch in India. With this deal signed, the company has started registering lenders on its platform www.monexo.co/in/ and will begin on-boarding borrowers from middle of September.
On signing the partnership, founder and CEO, Mukesh Bubna said, “We are excited about having ITSL (www.idbitrustee.com/) along on this journey with us and believe that this is the start of many good things to come. This partnership will give regulators and lenders confidence in our processes, and speedy service along with ease of payment to borrowers. We are transforming the credit process in India and believe that Monexo can be the leader in this space.”
Partnering with ITSL has three main advantages for the company and its future customers:
- 1. Borrowers are assured of a better customer experience where committed funds can be transferred to their bank accounts seamlessly and in a single transaction. This omits the need for a borrower to manage transactions with multiple lenders as is currently the process on many existing platforms. It also avoids disappointment for the borrower, when lender funds are first committed but not actually transferred, as can happen on other P2P lending platforms
- 2. Lenders can deposit their investment in an escrow account while they select suitable loans to lend to. Monexo does not have any control over their deposits and cannot utilize the funds for its own operations. This removes the risk of lender’s investments disappearing due to fraud or because the platform ceases to exist for any reason giving the lender more confidence.
- 3. The trustee arrangement is also in line with RBI guidelines which require peer-to-peer platforms to make plans for business continuity as per the latest Consultation Paper published by the RBI on 28th April 2016. Monexo has provided for this by incorporating a commitment by ITSL to continue to process customer repayments under any eventuality so that borrowers can repay their loan as per schedule and lenders can continue to receive their repayments.
Mukesh Bubna added, “ITSL is a pioneer in Trusteeship services. We are glad that they have agreed to be our business partner after being satisfied with Monexo’s control mechanisms and processes.” ITSL, jointly promoted by LIC of India, GIC of India and IDBI Bank, is India’s leading Trusteeship company administering more than Rs.20,000 crore across various industries.
About Monexo: Monexo Fintech Pvt. Ltd. is an online P2P lending marketplace based in Chennai, India. Its parent company Monexo Innovations Limited already operates a P2P platform in Hong Kong and has been the recipient of numerous awards. The company was founded in 2015 by Mukesh Bubna, Sonal Bengani and M. Sundar, industry experts with deep knowledge about banking and technology, with a vision to make credit more accessible and lending more rewarding. To read more about Monexo visit www.monexo.co/in/about-us/
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