Have to pay home rentals? Eyeing the latest mobile launch? Have to invest in Education?
Whatever your need is!
There is a loan for you if you want a hassle-free process and instant loan without much interference from the banks.
Well, there is good news for you all out there seeking for a quick and assured loan from a reliable source. And the news comes disguised as FAIRCENT.
What is Faircent?
In today’s socially interconnected world, where the peers are dearer to you than your relatives; even the entire loan world has taken a U-turn. Faircent is one an extremely innovative peer-to-peer lending platform for loans. Instead of bank coming to the picture, here both the borrower and lender interact with them and then mutually agree to their loans with their required rate of transactions. The sole mission of Faircent is to make the whole loan process swifter and since the entire world has come closer technologically, so why not use the same platform to speed up the process, and let people have it at their ease. Here, the borrowers get full-fledged opportunity to get their entire requirements funded at pretty viable rates and also help the lender to get the best possible return on their investment.
Founded back in 2014, by a trio- Rajat Gandhi, Vinay Mathews, and Nitin Gupta; Faircent has made a tremendous hike in the marketplace within this short span. Within two years, it has more than 6,000 registered lenders and more than 26,000 registered borrowers and has distributed a whopping loan worth Rs. 6.5 crores.
Now, with RBI’s new proposal which intends to regulate all the peer-to-peer platforms, Faircent will get registered as Non-Banking Finance Companies (NBFC’s). This eventually will help the central bank to keep a check on the platform. So, this definitely adds up to the reliability quotient of this. Also, the platform will have adequate risk management systems for its operations as well.
Currently, the service is available only for Indian residents.
As per every individual’s requirement, one needs to register himself as lender or borrower on Faircent. Post registration Faircent undergoes a comprehensive verification on the basis of the information provided.
Once the person passes all the verification barriers, an automated system suggests what the loan period, loan amount and interest would be against the borrower’s profile. The profile also showcases the borrower’s capability for how efficiently he can repay the loan amount. On the other side, the lenders can make offers to the borrowers on a first come first serve basis. The borrower and lender, both can strike deals with multiple members in one go. Once the agreement is reached between both the parties, a formal contract is signed by both. And then finally the loan amount is transferred, which the borrower eventually repays via EMI over the stipulated time frame.
Every repayment is on the online basis and can be easily tracked with the help of the individual’s unique account.
Benefits of Faircent over Banks
Here, at Faircent any lender receives an interest rate ranging between 12% to 28% depending on how the lender has spread his investment. The returns offered are not susceptible to any market turbulence, unlike the traditional market-linked investments. Further, Faircent is more like investing in debt; here the capital risk is lower and there exist multiple ways to mitigate any risk. In case, there is any default in the loan, the investor can very easily initiate a legal recourse against the borrower. With the help of diverse investments across vivid borrowers, the lender’s profile certainly starts to mirror the overall default rate of the platform, further gaining much stability and consistency; thus enjoying returns the way a bank does.
Who can be a Lender?
Any Indian resident, over the age of 25 years; who have a minimum annual income of Rs. 10 lacs with a valid bank account and PAN card can become a lender. Also, the companies which are listed under RBI or those which were formed under Indian Companies Act can be the lender.
Note: Faircent is an ‘Intermediary’ under the provisions of Information Technology Act, 1999. It is just an aid and assistance to the listed Lenders and Borrowers, and the information contained is just to enable the lender to make considered decisions as it will be the sole responsibility of the Lender and Faircent is not liable.