i2i funding.com: P2P online lending platform

by Gopal Gidwani on April 26, 2017 · 2 comments

in Financial Planning,Others

In this article we explore i2i funding.com which is a P2P online lending platform

Dearth of investment options
If you are looking to invest say Rs. 50,000 – Rs. 1,00,000 (spread over the next few months), in today’s scenario, let us explore the investment options that you have:

  • Bank fixed deposits: Today a 1 year fixed deposit is paying 6 – 7% interest rate. After paying income tax on interest, this translates into a net return of 4.8 – 5.6% only (if you fall in the 20% income tax bracket) and even lower net return of 4.2 – 4.9% (if you fall in the 30% tax bracket)
  • Gold: The prices of gold are stuck in a range of Rs. 29,000 – 31,000 per 10 grams since the last couple of years offering limited scope for appreciation.
  • Equities: With equity markets at new highs, in the short term, the risk – reward ratio is not very favourable at this point of time. If you are a long term investor and wish to invest through a monthly SIP for a minimum of 5 years, then equity mutual funds make sense.
  • Real estate: Since your investment is Rs. 50,000 – Rs. 1,00,000, real estate is out of question due to the high investment amount required. Even if your investment amount is much higher, the returns from real estate will be limited due to already high prices and sluggish demand, thus capping price appreciation.

So what are the other investment options that you can explore? Just like you, there are many other investors with a similar investment amount (Rs. 50,000 – Rs. 1,00,000) who are looking for an answer for the same question. In this article we make an attempt to answer the question by exploring Peer-to-Peer (P2P) websites.

Investment opportunity provided by Peer-to-Peer website/s
Peer-to-Peer (P2P) websites like www.i2ifunding.com act as intermediaries between loan borrowers and investors (loan financiers). Through these platforms, people (investors) who have surplus money and are looking for investment avenues, can finance the loans of borrowers (just like banks and NBFCs) and earn good returns in the form of monthly EMIs. So as an investor you can explore this investment option and earn high interest up to 30%. Sounds interesting? Let us see how to proceed.

Why i2i funding.com?
While there are quite a few P2P platforms that have emerged over the last one year or so, let us understand what the benefits are for you as an investor for investing through i2ifunding.
1) High returns: By investing through i2ifunding, you get to finance loans of various borrowers and earn high interest up to 30%.
2) High quality loan projects: The i2i team does the credit risk assessment of loan proposals received using its i2i’s proprietary Credit Score Model. The borrower is assessed on 40+ parameters such as credit history, education, job stability, income details and other behavioural pattern. This ensures only high quality loan projects are brought forward to investors like you for consideration for funding.
3) Principal protection: Based on the risk category of the loan, a certain percentage of the investor’s principal is protected (will be repaid by i2ifunding) in the event of a borrower’s loan default. This is an additional layer of safety net for the investors over and above point 2. More on principal protection later in this article.
4) Easy and transparent process: The registration and KYC process is online, quick and hassle free. You can choose the borrower / loan that you wish to fund with a minimum investment of as low as Rs. 5,000. Sounds interesting? Let us go through the investment process.

Investment process 
 P2P online lending platform

  • You can create your investor account and complete the KYC process online in a matter of few minutes. At the time of registration you need to enter your personal details along with your PAN number. You will need to upload a soft copy of your photograph. Click to register (or if registering directly then enter our referral id: 2668).
  • Browse through the borrower loan details like credit score, interest rate and risk category.
  • Go through additional details of the borrower that interests you. All the details of a borrower are mentioned like: purpose of the loan, income of the borrower, EMI to income ratio, average monthly bank account balance (for last 6 months), income from other sources, details of other existing loans, documents verified and other details. All these details help you assess the borrower’s credentials and decide whether you wish to fund him / her.
  • After going through the details, you may input the amount (minimum Rs. 5,000 and in multiples of Rs. 5,000) you wish to fund and wait for other investors to fund the remaining loan amount and complete the funding process
  • As the next step, the physical verification of the borrower is completed. The legal agreement is signed with the borrower and a digital copy of the same is sent to all investors.
  • You then need to transfer the funds to the borrower. You will start receiving EMIs directly in your bank account from next month.
  • You may repeat the same process for multiple loans and build a diversified high return loan portfolio by investing in multiple loans. You can now see your investment returns grow month-after-month.
  • The “My Account” section provides you all the details of your portfolio at any point of time.

Risks involved and principal protection
All investments carry risks, the difference being some carry very low risk and some carry high risks. Like any loans given by banks or NBFCs, loans given on the i2ifunding platform also carry the risk of default by the borrower. However, i2ifunding has cushioned the investors against the risk of default, to a certain extent.

Using the i2i’s proprietary Credit Score Model, each loan, based on the borrower’s credit risk, is assigned an i2i Risk Category from A – F (A being the strongest category to F being the weakest). Based on the risk category of the loan, a percentage of the investor’s outstanding principal is protected in the event of a default by the borrower. In other words, i2ifunding will return the outstanding principal to the investor from the principal protection reserve, if the borrower defaults. Extent of protection depends on the borrower risk category as given below:

 

Risk category% principal outstanding protection
A100%
B90%
C80%
D70%
E60%
F50%

So if a Risk Category ‘A’ loan borrower defaults, 100% of the investor’s outstanding principal will be returned by i2ifunding and if a Risk Category ‘F’ loan borrower defaults, 50% of the investor’s outstanding principal will be returned by i2ifunding from the principal protection reserve.

Conclusion
Coming back to the investment query with which we started this article, if you have some surplus funds and are not finding investment options as per your requirement, then www.i2ifunding.com is the place to head to. With i2ifunding you can start investing with an investment amount as low as Rs. 5,000, get an opportunity to earn interest up to 30% along with principal protection. What more could you, as an investor, have asked for?

Click to register as an investor (or if registering directly then enter our referral id: 2668)

In case of any queries please comment in the section below or write to us at gopal_gidwani@yahoo.com

{ 2 comments… read them below or add one }

Deepak Raj May 1, 2017 at 9:30 am

If borrower doesn’t pay the emi to the investor???

Reply

Gopal Gidwani May 1, 2017 at 9:56 am

Hello Deepak,
If the borrower does not pay, then i2i funding will pay 50% to 100% of the outstanding principal, depending on the risk category of the loan borrower, from the principal protection reserve.

Reply

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