5.Mukesh Bubna, CEO - Monexo -The 10 Most Promising Finance Companies In India 2022

Monexo is India’s most trusted & leading Peer-to-Peer (P2P) lending marketplace that connects people who are looking for instant personal loans and people who wish to lend money. They focus only on the salaried individual segment. Firstly, demonetization has impacted both the other segments. Then again, SMEs are operationally impacted by the existing tax deducted at source (TDS) structure which is not friendly when it comes to borrowing from multiple sources. This structure needs to be simplified for P2P lending to take off in the SME segment. They have made a representation to the authorities. Post GST implementation, they would look at other segments, maybe the second half of FY2018. They believe that India’s drive for “financial inclusion” is beyond bank account opening.

Traditional lenders are increasingly unable to serve small business enterprises (SMEs) and individuals who need credit. These borrowers are looking to expand their business, buy a home or pay off debts. Monexo empowers these borrowers to have a better life today.  They are a marketplace matching individuals & businesses who need credit to lenders who seek to invest in a profitable asset class.

  • They don’t have branches – they are 100% online with low overhead costs
  • They provide value – by offering personalized rates to you
  • They are transparent – in their processes and fees

Globally, P2P lending is innovating financial services. Monexo brings this innovative model to India.  They call it the ‘Power of One’. At Monexo, they have taken a pledge to spend 1% of their time and bottom line for financial education – to raise awareness about the choices and options one has at hand to lead a financially aware and healthy life.

Monexo believes that this integrated community approach will have a ripple effect in spreading financial education among the various communities of India in the long run.

What are the benefits offered to borrowers?

First and foremost is time-saving. The borrower is made known in a minute if the loan is available or not. Secondly, the process is digital. There is no upfront requirement for physical documents. The applicant needs to upload four scans – Aadhaar, address proof, bank linkage (account statement), and a salary slip. With these, Monexo can pull out data and check the background, since it is a member of IndiaStack.

Another benefit of Monexo is that it is active in the entire activity chain of P2P lending – origination, screening, profile-grading, pricing of each application, disbursement, client servicing, and lastly debt collection. This is right now a key differentiator among their contemporaries. Their process is largely system-driven with the only physical intervention being the actual scrutiny of original documents.

The industry today is worth around Rs 30-40 crore. Sooner or later, the trust mechanism will become key for functioning as it is difficult for lenders to manage multiple transactions.


Leave a Reply

Your email address will not be published.