Lending platform Cashkumar has received its NBFC-P2P certification from the Reserve Bank of India (RBI), the company said in a statement. The RBI issued those guidelines last October, to register and accredit P2P lending firms that resell loans from individuals who have money to invest.

Started in 2016, the Bengaluru based company essentially connects lenders with spare money with borrowers. The platform facilitates these transactions through background checks using factors like CIBIL, and CRIF scores. On its website, the company writes that it undertake the entire credit evaluation process, legal documentation and collections.

Borrowers can request loan amounts between Rs 20,000 (minimum) to Rs 1 lakh (maximum). The platform facilitates loans for a minimum duration of 3 months and a maximum tenure of 12 months. In terms of interest rates, the company charges a flat interest rates, ranging between 1.5% to 2.5 % per month. Cashkumar also writes on its websites that it charges no amount for pre-closure of loans.

The company announced in May that it has raised angel investment of Rs 5 crore through deals platform LetsVenture. The company also said that it has disbursed more than a 1300 loans on the platform worth Rs 6 crore has over 800 lenders. With the RBI license in place, Cashkumar will now further expand its operations to grow to 10000+ lenders and target loan disbursals worth Rs. 45 Crores by end of FY 2018-19, the company said.

Cashkumar now becomes the fourth lender to operate in the NFC-P2P space. Last week, BigWin became the third lender to operate in the NFC-P2P space. In June, OMLP2P became the second P2P lender to get RBI’s nod for NBFC-P2P certification, while In May, Faircent became the first such platform to receive this certification from the central bank.

RBI regulations

According to the guidelines put out by the RBI last year, the P2P platforms will act as only as an online intermediary and not raise deposits. These platforms will only act as a facilitator between different parties, and cannot provide any credit enhancement or credit guarantee. The RBI also directs that these companies cannot cross-sell other any product except for loan specific insurance products, and are not permitted international flow of funds. Also, the P2P lending platforms are supposed to undertake due diligence on the participants including credit assessment and risk profiling of the borrowers and disclose the same to their prospective lenders. They will also have to take prior and explicit consent of participants to access their credit information. The guidelines add that, the platforms will have to provide assistance in disbursement and repayments of loan amount and render services for recovery of loans originated on the platform.