Fintech firms that originally offered loan originations and pure-play credit marketplaces are now looking to become lenders themselves.
Some of these firms have either applied for or have received a non-banking finance company (NBFC) license from the Reserve Bank of India (RBI), according to local news outlet the Economic Times.
Bengaluru-headquartered Moneytap, which provides a line of credit for local consumers through a partnership with Mumbai-based RBL Bank, was recently awarded an NBFC license.
Explaining the firm’s business strategy after acquiring the license, Moneytap’s CEO Bala Parthasarathy said:
“We will be using the licence to enter into co-lending with our lending partners, offer better interest rates for our customers and, in this way, put some skin in the game.”
Currently, Moneytap is working with four NBFC partners and two local banks.
Founded in 2016, Moneytap has created a loan book totaling Rupees 1,000 crore (appr. $140 million). The firm has also achieved a Rs 2,500 crore (appr. $350 million) per year disbursal run rate.
Other Indian Fintech startups have also been awarded a lending license from the RBI.