There are no hiccups as yet but the process has been a bit lengthy. Many borrowers are not secured, so they take time in returning the money. They do lack a little financial professionalism but Faircent overall provides great support in making every interaction with the borrowers count.

According to the Harvard Business Review, Banking Restrictions appears among the top 10 most crude and quantitative indicators in the Index of Economic Freedom. This is precisely where P2P Lending can add value to any economy. Where Banking Restrictions fail to finance people within a genuine need, P2P Lending provides the flexiblity so that such people can receive funds with less paperwork, from the people themselves. The people providing the funds also benefit as they can earn returns higher than most other investment options. This enables the national economy to work for the people whereas otherwise the people would not have gained the benefit. To give you a glimpse of what we are talking about, at Faircent, over ₹ 10 Crores worth of loans have been disbursed and the average rate of interest a lender using P2P Lending as an investment option earns about 18% to 22% p.a. This shows the kind of potential P2P Lending has to boost our economy. In order to provide insights into how individual lenders are benefitting from P2P Lending, Faircent spoke to some of its lenders and documented their journey for everyone’s benefit.

Mr. Ankit Agarwal has been an active lender on Faircent for quite some time and this is what he had to say about his progress with P2P Lending so far. We asked him about his portfolio as an investor and the way he sees the future from an overall investment point of view. Mr. Agarwal replied saying that he had entered the field of investments with the sole purpose of seeing it yield higher returns. “Faircent is perfect for all the risks I undertake to achieve better returns”, he said.

Mr. Agarwal said, he feels that a P2P lending platform allows one higher returns with better security than Equity based instruments. He said, “Unlike the crashes in the equity market, with Faircent your risks are minimised as you can still recover your money from borrowers”, he said. He went on to say that P2P lending platforms need to be regulated and enhanced by RBI.

...contd.