What is P2P Lending?

Peer-to-peer lending (also known as person-to-person lending, peer-to-peer investing, and social lending; abbreviated frequently as P2P lending) is the practice of lending money to unrelated individuals, or "peers", without going through a traditional financial intermediary such as a bank or other traditional financial institution.

Investor Eligibility Criteria 

Investors must meet the following criteria to participate in the investing process on Faircent.

• »Resident of India
• »Atleast 21 years old
• »Earning member
• »Have an identity proof
• » Have a valid bank account

What Faircent?

Faircent.com is an online social lending initiative that brings together potential borrowers and investors. Borrowers or investors can apply or offer loans as the case maybe, by registering on www.faircent.in.in. Faircent.com takes care of all the transaction documentation for both, borrowers and investors. Equal opportunity is given to any borrower or investor to make offers or take loans. By following the terms of agreement of the website Faircent.com, members can negotiate with each other directly and the entire process is transparent.

Where to Invest?

where to lend The Internet has managed to disrupt many industries, from publishing to music. So why not lending?

How P2P Lending works?

When an investor is successfully registered, his listing page appears on the investor listing page. Investors can then browse borrower listings and bid on thier loans, depending on their investment criteria.

Investors can decide the investment amount and interest rate at which they would like to invest in the borrowers. However,  Faircent.com's built-in system intelligence selects the best offers for the borrower depending on the lowest interest rates being offered by participating investors.

This process is done in real-time and hence during the period of borrower listing being active, the best rates being offered is chosen by the system.  Similarly, borrowers can browse investor listing page and send requests for bids on thier from you. You can either accept or reject these requests. This information can be viewed by the investors in thier listing page. Investors can make offers only when the borrower listing is active, i.e. until the borrower has not accepted his loan. Once a borrower accepts the loan amount during his active listing period, the listing is closed for further offers. Faircent.com then collects all necessary documents, executes the required agreements, collects cheques from investors and deposit in the borrower accounts

Risks Involved

Your returns are determined by the interest rate that a borrower pays on his loan. A borrower loan interest rate is arrived at by calculating the weighted average of all the interest rates offered by various investors on the particular borrower loan. 

HOW DO I ASSESS THE CREDITWORTHINESS OF THE BORROWERS?

Fiarcent offers various data points to the lenders to understand the borrower creditworthiness. This information is provided through the listing page of a borrower.

Tip #1

Look for listings in which borrower has filled-in all the sections clearly and has shared  information about himself that is otherwise not available as a default data point in all borrower listings. This shows the borrowers effort to build his rapport and credibility with lenders. A serious and genuine borrower will try to tell you more about him, his personality, his likes and interests etc. and supplement it with facts.

Tip #2

Read the “Purpose of loan” section carefully. Understand why a borrower needs the loan and how he plans to use this money. If you have any questions for him, ask him through the “Question & Answer” Section in the listing page.

Tip #3

The “Why should you invest in me?” section is specifically asked so that borrowers are given a chance to communicate with the investors and explain why they think they are creditworthy. Through this section, try to assess the willingness of a borrower to repay the loan

Tip #4

The financial status section gives you data such as borrowers’ monthly income and monthly expenses. This will give you a clear picture on how much a borrower saves every month and if he is capable of repaying the EMI every month. You can see his monthly EMI amount on his listing page.  The borrowers’ monthly expense also includes his other loan commitments. Faircent checks this information with the borrower bank records before confirming the details on the site. Borrowers’ financial status also includes any other assets that they own such as a two-wheeler, house/ flat, land etc. This helps you understand his saving habits and how prepared they are financially in the event that there is some financial emergency. Faircent also offers data on the maximum loan that the borrower is eligible on Faircent. This is calculated considering his monthly income, expenses, other commitments and other miscellaneous expenses he has every month.  Borrowers can also fill in more details on their financial conditions in this section. 

Tip #5

Information such as Borrowers employer, city of residence, work experience, job changes till date, marital status etc. are shared through the “Other details” section. Borrowers can also share other information such as their likes, interests, hobbies, education qualification, Institute studied from etc that allows you to understand the borrower a little more.  You can read this information along with other information such as years of experience vs. salary, years of experience vs. no. of job changes, marital status vs. no. of job changes, age vs. income etc. that give you more insight into the borrower.

Tip #6

Borrowers, who share more personal information, make their photos visible to investors, share videos about them etc. are less likely to default.

Tip #7

Look for recommendations on borrower listings. Borrowers can receive recommendations from investors and fellow borrowers. Recommendation tools help you understand that there are a group of individuals who vouch for that particular borrower. You can also reach out to these members through the Q&A section!

Tip #8

Please ask borrowers as many questions as you like. You can decide to invest in a borrower based on his responses.

Rates & Fees

Rate of Interest

You can set Rate of Interest as per your choice

Processing Fees

Faircent.com charges a nominal fee of 1.5% of investment amount for all closed transactions and a one time verification fee of Rs. 200

Invest within Communities

Now you can invest with in your community. Faircent Allows you to search borrowers from your community

Click here to search Borrower with in your community