Business Model

Introduction

Moneymela serves as an intermediary between investors looking for new age investment opportunities and individuals or enterprises that have small financial needs that they can crowdfund through our platform.

We will offer complete loan application assessment, loan management, repayment management and recovery solutions to the lenders and borrowers, making it easier for them to invest and borrow funds without worrying about the risks associated with such transactions.

In order to qualify as a borrower at Moneymela, the applicant must fulfill the following eligibility criteria

• At least 18 years of age or a duly registered business in India.
• The individual applicant must have valid government issued ID proof such as PAN card, Aadhaar card, driving license or passport.
• The business applicant must have any proof of business incorporation
• The applicant must have a valid Indian Bank account
• The applicant must have a steady monthly income for repayment of their loan.

In order to qualify as a lender at Moneymela, the applicant must fulfill the following eligibility criteria

• At least 18 years of age
• In the case of a company, the lender applicant must be an RBI-listed finance company or a company duly registered under the Companies Act, 2013.
• The individual lender applicant must have valid government-issued ID proof. In the case of an NRI, the lender applicant must have a valid Indian NRO Bank Account.

The process

Participants, which refer to both lenders and borrowers, are required to register with Moneymela by providing their basic information. The registration process ensures high security through OTP verification and a strong password policy. Borrowers and lenders need to pay a nominal fee for registration.

Once registered, participants must upload specific documents for verification by Moneymela. The eligibility of the participants will be checked, and for borrowers, their creditworthiness will be assessed by Moneymela's credit team.

After successful verification, the borrower's loan will be listed on the marketplace for investors to invest in. Once lenders choose a borrower for investment, Moneymela will facilitate the execution of a loan agreement that outlines all terms and conditions between the borrower and the lender(s). Subsequently, the loan amount will be disbursed from the ESCROW account to the borrower's personal account.

Borrowers can repay their loans through monthly EMIs, which include the principal amount and interest, via NACH debits. The repayments received from borrowers will be deposited into Moneymela's ESCROW account and subsequently transferred to the respective lenders.

Revenue Model

Moneymela charges a one-time registration fee from both the borrowers and lenders. The company also generates revenue through processing fees for the sanctioned loan and other transactional charges. Also, the company generates portfolio maintenance charge from the lenders post collection of EMI for the loans they have lent.