The world has become very competitive, everyone is running behind their development. Not till today have I realised that everyone needs money at some point of time or the other. I didn't know getting money was that tough, until I had asked someone for a short term loan. I just came across this company called loan meet, which is one of the online P2P lending platforms in India. This concept of Peer to Peer lending is very nascent in the Indian scenario and not many players exist in this field of business. In urban areas, gone are days where people followed the traditional way of borrowing money from a pawn broker at an exorbitantly high interest rate. New ways of money sourcing like crowdfunding and P2P lending is the latest fad. This is a very huge market indeed, specially in a country like India. Loan meet comes under the same tree. RBI also encourages this kind of new businesses because they want to discourage the pay day loan where a person takes a loan per day at a specific amount of interest, sometimes it's called call money scheme. The way in which loan meet operates is different. It raises funds for various professionals and self employed, who find it difficult to get a loan from banks because of many petty reasons. When they started their business, people around them were very skeptical about this business being successful.
"I started thinking of this business idea when I gave a small loan to a fruit seller, so that he could scale up his business to some extent" says Loan Meet's Co-founder, Sunil Kumar, who is an alumni of IIT Bombay. On this platform lenders and borrowers come together to complete a loan transaction. A borrower can post his loan requirement by getting a approval from the loan meet team, and the lenders can propose a interest rate at which they can sanction the loan. Till today loan meet has completed more than 100+ loan transactions and disbursed a total amount of 1.5 crore, which helped many small scale businesses grow. "Our motive was not to make huge money out of it, but it was to help people get money in the time of need. This incase is mutually beneficial to both lender and the borrower" says Ritesh Kumar, the second founder. Today loan meet has ten employees who constantly work for making the platform more approachable to people.
"We conduct a very brief background check of every candidate who approaches us for a loan. We get CIBIL scores, salary pay slips and other important documents. We are also very adaptable to the new technology which comes up now and then. Very soon we will be integrating our systems with block chain technology " says Tarun Lalwani, an employee at Loan meet, when asked about the security aspect of the transaction which happens.
Loan meet works in compliance with RBI norms and the interest rates are also mandated accordingly, the loan agreement has a complete set of clauses which will make the lenders money more secure. Every month the cash is debited through the borrower's account and is credited into the lender's account, which makes this loan process hassle free and non messy. They say their vision is to complete a total loan transactions of $1 billion dollar, which will make many dreams come true. The best part is, even a student can put in his saved up money and it can be something as less as 10,000 rupees. In this age of crowd funding where firms would like to get funded to develop their products, this model of P2P is going to flourish very soon in the field of funding an individual.
I personally believe that everyone should be given an opportunity to grow or in fact everybody should be provided with opportunities to grow up. As responsible individuals we need to emphasise more on the societal development and just start believing the businesses around us. We were never able predict the future before, and even now we cannot. Let's hope everyone makes use of the opportunities prevailing the market and try to be the best. Let's hope Loan Meet's business service will help many more lives and businesses better for this today's world.