With this loan, college students will be able to fund purchase of items such as laptops, books, mobile phones, etc. by registering their loan requirements on the platform.
Noida: Faircent.com, India’s leading online P2P lending platform, has introduced a new semi-secure loan product in collaboration with Bangalore-based micro-lending startups. This is the first-time an Indian P2P lending platform is stepping in to help students avail fast and easy personal loans at a reasonable cost. Lenders can also avail a partly-secured alternative-investment opportunity that delivers a higher return, the company said in a press release today.
Under the partnership, college students will be able to fund purchase of items such as laptops, books, mobile phones, etc. by registering their loan requirements on the platform at a reasonable rate with a flexible loan period ranging between 6 and 36 months.
Lenders can build a diversified portfolio by funding these loans which will be partly secured against default as the micro-lending startups will provide a certain percentage of the principal as a first-loss guarantee in case of default.
Speaking on the collaboration, Rajat Gandhi, Founder and CEO, Faircent.com, said, “Faircent.com has, since its inception, sought to make online P2P lending a viable and attractive investment option for lenders in India. Through a constructive synergy, we have built an innovative product for lenders to further diversify their portfolios by investing in these semi-secured loans and earn high gross returns. This is also the first time we are dedicatedly targeting college students as a borrower demographic on our platform. We are enthusiastic about reaching this largely overlooked segment and exploring this potential market for financial products.”
Students are registered after due diligence. On-campus ambassadors verify details of the students applying for loans. Additionally, personal guarantees from parents/guardians are taken to counter risks of default or delayed repayment.
The latest product rollout marks the launch of yet another attractive alternative investment option by Faircent.com, which has been popularizing online P2P lending in the Indian market. As per the latest Faircent.com Research and Analytics Report, nearly 90% of lenders on the platform earned gross returns in between 18% and 26% per annum, underlining the rise of online P2P lending as a highly lucrative alternative asset class for Indian investors.