Antworks Introduces P2P Micro Loans To Further Expand The Scope Of Micro Finance Industry

Gurgaon head-quartered financial technologies group Antworks has tied up with Kolkata-based Grameen Shakti Micro Finance Services Private Limited (GSMS) to provide micro loans under a joint lending program to the rural and semi-urban borrowers in West Bengal and Bihar. This is first of its kind initiative which will see a Peer to Peer financing company tying up with a RBI regulated Micro Finance company to provide micro loans under peer-to-peer lending framework. Antworks will bring in retail Individuals as lenders for this program and the lending to borrowers would happen on the peer-to-peer financing platform of Antworks (www.antworksp2p.com). GSMS would be responsible for sourcing of borrowers while credit evaluation would be done jointly by Antworks and GSMS. Further, GSMS would be responsible for credit monitoring and recovery of loans in a manner that the loans do not turn non-performing in the hands of participating lenders.

The first disbursement under the Program was made on the auspicious occasion of Puja festivities. Commenting on the occasion, Mr. Rajeev Mahajan, co-founder of Antworks stated, “It has been our vision to democratize the lending sector in India by bringing more participants in the sector. Benefits of technology in financial services should reach all and it has remained our endeavour to enhance financial literacy in the interior India. Joint lending program with GSMS will go a long way in strengthening Micro Finance sector in India. This program would also open up participation of HNIs and companies in micro loans segment thereby helping to bring down the cost of lending and making the loans more affordable for the borrowers”. Mr. Subhayu Ghose, co-founder of Antworks and CEO of Antworks P2P Financing Private Limited stated, “The joint lending program with Grameen Shakti would prove to be a game changer for Peer-to-Peer financing market in India and would provide a reliable investment opportunity for retail investors. GSMS would be acting as Business Correspondent for Antworks P2P Financing Private Limited and would provide the last mile connectivity to Antworks. This arrangement is win-win solution for the borrowers and lenders facilitated by GSMS and Antworks”.

Micro Finance and P2P, a win-win combination

Speaking on this occasion, Mr. Gamesh Modak, Managing Director of GSMS stated, “The Micro Finance industry needs to expand its sources of finance to reduce dependence on Banks”. He emphasized that rural and semi-urban Micro Finance borrowers are sincere towards loan servicing and always prioritise EMI obligations. He said, “Post-CoVid19 the Micro Finance industry is facing tremendous challenges in terms of availability of fresh financing from Banks who are reluctant to extend new loans to the MFIs. Even direct assignment or portfolio sale-out transactions have been quite selective. MFI industry operates mostly on secondary and tertiary sources of finance. Introduction of P2P segment of lenders to the micro loan products can change the landscape of the MFI industry.”

Antworks takes P2P to the masses

It may be noted here that RBI introduced regulations for P2P financing market in India in 2017 and so far it has issued about 21 P2P-NBFC licenses to fintech companies. However, the P2P Financing is still at nascent stages in India and innovations like this would definitely help in raising awareness about this investment opportunity which in turn would result in growth of this sector. Antworks, a Gurgaon based financial technology startup, is continually working towards mainstreaming the P2P loans market.