KOCHI: Oxyloans was born from the idea of helping customers who had their loan applications rejected by traditional banks for various reasons, and those who seek a different option from private moneylenders who allegedly charge usurious interest rates coupled with harsh recovery methods.
Marking an entry into the Peer-to-Peer (P2P) world, apart from easy access to loans, Oxyloans promises high returns for investors as well, through its Peer-to-Peer Investing (P2PI) platform.
Moreover, the lending platform assures flexible loan repayment options, with the Equated Monthly Installments (EMI) being decided between the lender and the borrower.
“We have an enormous opportunity in the Indian market. We would be tapping people who are looking for alternative lending platforms, as well as high net-worth individuals (HNIs) who look for diversified investment options,” said Radhakrishna Thatavarti, founder and CEO of city-based financial technology startup SRS Fin Tech Labs. Praveen, co-founder, said, “Technology is a great enabler in making loans accessible to rural markets. Availability of loans spurs growth rate, which in turn, benefits the economy as a whole.”
On the loan recovery aspect, Radhakrishna said a recovery agency could be employed, and in a worst-case scenario, legal action could be taken on the defaulter. The startup is awaiting instructions from RBI on the P2P lending regulations. With a team of 17 people, Oxyloans has raised over Rs 1 crore till date, and the founders are seeking another Rs 2 crore investment by the year-end.
“With this seed capital of Rs 3 crore, we aim to attract Venture Capitalists (VCs) for raising funds worth $20 million”, added Radhakrishna.
Setting its sights far, Oxyloans is aiming for enabling lending of $1 billion worth loans by 2024.