Fintech start-up NIRA, that provides small credit to consumers with limited access to traditional avenues of finance, has raised $1 million seed funding from angel investors in the UK and India.

The funding will be used to accelerate building out the core team and technology to drive the initial growth of the business.

Co-founded by former Goldman Sachs colleagues Rohit Sen and Nupur Gupta, NIRA went live in May and focuses on promoting financial inclusion by providing small credit of up to ₹1 lakh for up to one year through transparent products that empower individuals to live a life of choice and freedom.

The start-up has partnered with Federal Bank to provide loans to consumers at interest rates ranging from 1.5 per cent to 2.25 per cent a month, depending on the consumer's risk score. Loans are repayable over 3-12 months.

“The need of the hour is small sized loans because consumers who earn ₹20,000 –30,000 a month find it very difficult to get loans from banks which expect a good CIBIL score and collateral. We are targeting consumers who are in the early part of their careers who earn modest salaries” Rohit Sen, co-founder and CEO, NIRA told BusinessLine .

To apply for credit, the consumer needs to be an Indian citizen, have a college degree, be working for a minimum of six months and earn a salary of ₹20,000 a month. To get started, the required details have to be filled on the NIRA app or website. Once the consumer has qualified for credit, the required documents - most recent payslip, bank statements for the last six months and Aadhaar number - can be uploaded. After the documents are verified, they can get the loan.

“We have been refining our product and strategy over the past few months and our focus will now be on executing our strategy and scaling the size and reach of our operations” said Sen.