DhanaX.com introduces p2p lending to India. Lenders can loan to borrowers that a screened by an "agent". The agents typically are small microfinance organisations, rural technology centers or non goverment organizations. One current example is the SOS Family Strength Organisation of Dr. Hermann Gmeiner. Since there is no established credit rating system in India, agents will check the ability of the borrower to repay the loan looking at 40 parameters like borrowers income, stability, occupation.
Some key facts on the dhanaX lending model:
- Lenders can either loan to a single borrower or diversify and fund multiple loans with small amounts
- Minimum investment for lenders is 1,000 Rs (approx 23 US$)
- Maximum investment per lender is 1 million Rs
- Borrower can borrow up to 20,000 Rs (approx. 460 US$)
- Fees: dhanaX charges lenders a 100 Rs sign up fee and 1.5% fee of the monthly repayments. Borrowers are charged 6.5% of the loan amount
- Only Indian nationals can lend, non-resident Indians can lend provided their bank account matches certain specifications
Siva Prasad Cotipalli and Prashant Mishra founded dhanaX using family and friends, prize money from a business plan competition and funds from an angel investor. They talk about the aspects of entrepreneurship in India in a "Making Of" video.