Amid liquidity challenge looming over non-banking financial companies(NBFC), the Reserve Bank of India registered online NBFC startup LoanTap has raised over $8 million. The funding round was led by early-stage venture capital fund 3one4 Capital. LoanTap raised the amount via a combination of equity and debt instruments, between October to December 2018, the company said in a statement. Existing investors including Shunwei Capital, Kae Capital, India Quotient, Tuscan Venture and angel investor Ashish Goenka also participated in the round. "3one4 Capital brings in a unique blend of expertise in core tech investing and a deep sectoral understanding along with an immense network that includes its marquee LPs," said its CEO Satyam Kumar. LoanTap claimed that it turned profitable within the first five quarters of operation even as its loan book is growing at 12% monthly. The startup was launched in May 2016. "By giving their customers more choice, better information, reduced complexity, and allowing for personalization, the LoanTap team has demonstrated a true understanding of the elements that go into building an institutional presence in their space," said Pranav Pai, Founding Partner of 3one4 Capital. Industry body Assocham had met the Reserve Bank of India governor Shaktikanta Das last week to discuss the liquidity challenge being faced by non-banking financial companies (NBFC). Assocham told the governor that overregulation of the sector is hampering the growth of the NBFC model of lending, PTI reported. The trade association requested Das not to revise the current asset-liability mismatch (ALM) norms for NBFCs till the normalcy is restored. It underlined the need for a regulator that would also act as a facilitator for NBFCs. However, Satyam Kumar thinks that the liquidity crisis is temporary in nature while similar situations have been dealt with by the industry in 2013 and 2008. The RBI had cancelled the\u00a0registration of 45 NBFCs earlier this month without specifying the reason. Economic affairs secretary SC Garg told FE in an earlier interview that the traditional ways NBFCs were financing themselves have to change. "They were financing by taking a lot of commercial papers. That route has got reduced substantially." "Mutual funds, LIC and people, in general, can invest in some of the NBFCs. The deposit programmes of the NBFCs have been fast-tracked as well. Also, the RBI has taken some measures like partial credit enhancement, change in concentration limits etc. so that banks can invest more in NBFCs," Garg added.