LoanTap Financial Technologies Pvt. Ltd, an online non-banking financial company (NBFC), said on Thursday that it has raised $3 million ( 20 crore) from Mumbai-based high-net-worth individuals Abhishek Pandey and Jaysukh Sapra.

The company will use 85% of the funds to extend loans and the rest to strengthen its technology and marketing.

Founded in May 2016 by Satyam Kumar and Vikas Kumar, the company received its NBFC licence in July.

The Mumbai-based company extends loans to salaried individuals. A potential borrower can apply for the loan online by logging in from a Facebook or LinkedIn account, fulfil the know-your-customer (KYC) requirements on the portal and upload documents such as a salary slip and bank statements of the previous six months.

KYC is a process of verifying the identity of the borrower and a regulatory norm specified by the Reserve Bank of India (RBI).

LoanTap assesses the borrower’s credit-worthiness by collating the information from the documents in addition to sourcing the borrower’s CIBIL score.

Once approved, the final step before the loan disbursal requires the borrower to print and sign the documents—they are collected by third-party collection agents on behalf of LoanTap.

Credit Information Bureau Ltd or CIBIL is a credit rating agency which issues a score that reflects the credit worthiness of the user.

Currently, the entire lending process takes up to 38 hours, which LoanTap aims to reduce to 24 hours by the end of August, Satyam Kumar said in an interview.

LoanTap currently receives seven to eight applications a day across Bengaluru, Delhi, Mumbai and Pune.

It has disbursed loans worth 70-75 lakh across 36 borrowers, with an average borrowing amount of 200,000 for a duration of five years at an interest rate of 18%.

It targets 22- to 36-year-olds, who are earning for a minimum two years and get a monthly salary of 35,000-200,000.

In the next one year, LoanTap plans to introduce loan products for cars and homes and expand to 10 cities including Indore, Hyderabad, Chennai, Ahmedabad, Chandigarh, Kolkata.