It is a known fact that diversification is the key to earning returns from investments. It is prudent to spread your investments across opportunities delivering fixed to high returns. This is especially true for market-linked investments. Whether it’s stock exchange or lending exchange like Faircent, building a diversified portfolio helps to spread risk and earn high returns.

Faircent has over the years launched many innovative processes and tools to enable lenders to diversify their portfolio – whether it is to provide the option to choose from thousands of pre-verified borrowers spread across risk buckets or the launch of auto-invest that makes the task simpler, faster and more efficient or even fractionalization that helps lenders invest as low as Rs. 500/- per loan.

Taking this a step further, Faircent has launched many new products with varied expected rate of return to help lenders invest as per their risk appetite and investment objectives. Some of these product offerings are detailed below:

Term Loans

Term loans are loans with fixed tenure, EMI, interest rate and repayment date. Lenders can now also pool their funds and invest in a collection of term loans known as Group Term Loans launched in collaboration with our partners. Term loans provide an opportunity to earn higher returns by investing in loans at interest rates from 12% to 36+% p.a

Pool Loans

Funds from multiple lenders are pooled together, then this pool is used to finance a group of loan requests from captive borrowers such as merchants and distributors of a partner who require short-term loans (daily/weekend) to meet the day-to-day needs of their business operations.

The merchants/distributors eligible for this loan product are pre-chosen through Faircent’s automated credit evaluation mechanism, basis certain parameters such as business size, stability, continuity, daily transaction size, repayment track and credit report and other data provided by the partner.

Line of Credit

The Line of Credit loans are short duration loans (up to 3 months) where the borrower can withdraw money up to an assigned credit limit and repay anytime within the duration of the loan. This loan product is popular with small businesses who often need quick funds for short durations to stay updated on their cash flows.

The pre-set maximum amount of credit for every borrower is fixed by Faircent’s automated credit evaluation mechanism basis careful evaluation of financial and credit information and business performance. Interest earnings are calculated basis the amount of money actually withdrawn by a borrower from the credit limit provided to him and is calculated on a daily basis on a flat rate. 

Lenders can now choose from a wide variety of loan products as per their risk and return expectations. For more details please do log in to your personalized dashboard or contact your portfolio manager.