“Hi. I am Vikas Pandit from Bangalore. I work as a Marketing Manager for a small company. My sister’s wedding is scheduled for next month. I need a personal loan to cover the expenses. Banks and NBFCs are not sanctioning my loan because my company doesn’t feature in their approved list of companies. They are willing to offer a credit card but the interest is exorbitant. I don’t know what to do!”

“Hi. I am Sarojini Talwar from Mumbai. I work for an MNC as the HR Manager. I am an active investor and always look for ways to save money. My father is due for a heart surgery soon. Unfortunately, my medical insurance has expired and I forgot to renew it. I need a loan to cover the costs. Having a good credit history, most banks are willing to offer loans to me. I am also aware of P2P lending market in India. Not sure what should I choose!”

Situations like these are not unfamiliar to most of us. While we try our best to safeguard ourselves against financial setbacks by planning for the future, sometimes unexpected events lead us down the road of availing a loan. Banks and other financial institutions have a plethora of loan products to cater to almost all exigencies. However, the stringent sanctioning procedures and the rate of interest charged can be a huge deterrent and can force borrowers to look for cheaper and hassle-free options.

Peer-to-Peer lending is the latest financial tool which allows borrowers of reasonable credit standing to avail loans at relatively lower rates than those offered by banks &financial institutions. By connecting borrowers directly with the lenders, it removes the intermediary costs and helps borrowers get better interest rates.

Conventionally, if you need a loan, you submit an application with a bank or a financial institution, provide your documents, wait for your profile to get sanctioned and hope that the approved loan amount and interest charged is as per your requirement. Peer-to-peer lending removes borrowers from such a passive role into a highly active participant in the borrowing cycle. It empowers you, as a borrower, to negotiate the loan amount and the interest rate directly with the lender.

Usually, banks look at CIBIL scores to determine the credit standing of borrowers. People-Lend uses CIBIL and other aspects like location of residence, trends in expenditure, qualification, credit card history and many more factors to assess the creditworthiness of prospective borrowers.

People-Lend is a faster, cheaper and simpler platform to avail loans.

Why peer to peer Loan

In the fast paced life of today, we usually find ourselves struggling to make ends meet. The cost of living deprives us of saving enough for exigencies and many a times we find ourselves face-to-face with a situation which we are not financially prepared for. That’s why loans exist in the market. Borrowers usually tend to turn to banks or financial institutions (FIs) during such times of need. However, not everyone gets a loan and those who do accept the interest rates and complexities of the procedures as they don’t have a choice.

Peer-to-Peer lending is a great alternative to borrowing from banks or FIs. We connect you with investors directly and the loan amount as well as the interest rate can be negotiated with them for your benefit if you have a good credit rating. Regardless of the negotiation, the interest rates are usually lower than what you would be offered with banks and FIs.

We allow borrowers to pre-pay their loans in full or in part without any charges. You can contact us and reduce the outstanding loan amount by merely transferring the funds. From registering with us to uploading your documents to applying for a loan to communicating with investors; we have a state-of-the-art technology based platform to provide a seamless experience.

We understand that requirement of funds usually is urgent in nature and by building a long-lasting trust relationship between investors and borrowers, we constantly strive to reduce the time between applying for a loan and receive investors for the same.

Who Can Borrow

At People-Lend, we strive to provide a platform for investors and borrowers alike to benefit for the peer-to-peer lending opportunities. We have simplified the registration process for borrowers with a few basic eligibility criterions and related documents.

ELIGIBILITY CRITERIADOCUMENTS NEEDED
  • Government of India recognized Identity Proof
  • Passport
  • PAN Card
  • Voter ID Card
  • Driving License
  • Aadhaar Card
  • Also Admissible
  • Government / Defence Services ID Card
  • ID Card of public sector employees
  • Pension payment orders of retired employees
  • Government of India approved Address Proof
  • Passport
  • Voter ID Card- if it contains latest address
  • Alternately
  • Income tax/ wealth tax /assessment order
  • Letter from public sector employer
  • Pension payment orders by government departments/public sector undertakings
  • A Valid Bank Account
  • Last 6 Months Bank Statement of salary account
  • Currently earning with a valid Income Proof
  • Salaried Employees – Last 3 months salary slip
  • Self-employed – Last 3 years Balance Sheet & IT Returns
  • Indian Citizen
  • Passport
  • Voter ID Card

 

Apart from the documents mentioned above the following additional documents are needed:

  • PAN Card (Mandatory for all Customers)
  • Last 6 Months Bank Statement from every bank where customer has account
  • Aadhaar Card

Eligibility Criteria

  1. Over 21 Years of Age
  2. Minimum earnings of Rs.3,00,000 per annum
  3. Indian Citizen
GOVT.
RECOGNISED IDENTITY PROOF
Passport
PAN Card
Voters ID Card
Driving license
Aadhaar Card
Govt. / Defence Services ID card
ID card of public sector employees
Pension payment order of retired employees
GOVT. RECOGNISED ADDRESS PROOF
Passport
Electricity bill
Telephone bill
Credit card statement (not more than 3 months old)
Income tax / Wealth tax / assessment order
Letter from public sector employer
Voters ID Card (only if it contains latest address)
Pension payment order by govt. departments / public sector undertakings
Consumer gas connection card / pipe gas connection bill
Post office Savings book

These documents can be submitted online (scanned copies) which will be subject to physical verification prior to the agreement. We are committed to the confidentiality and security of all the information provided to us and assure you that this information will only be used for internal / official purposes.

Loan Purpose and Types

P2P Lending is an online platform to help borrowers and investors communicate with each other for mutual benefit. While investors look for opportunities to increase returns, borrowers thrive to avail loans at cheaper rates. Though there is no restriction on the purpose for which the loan is sought, unless it is illegal or unethical, the more popular segments in which loans are availed are

Personal Loan

A Personal Loan also commonly known or an “All-purpose loan” has no restriction on the end use of the funds.Borrowers use personal loans for vacations, buying a new appliance, to fund weddings etc.

Debt Consolidation Loan

A Debt Consolidation Loan allows borrowers to combine many loans into a single loan. This helps borrowers save on interest and the hassle of managing multiple loans.

Home Improvement Loan

Loans taken for adding value to the existing property like civil renovation, purchasing furniture and fixtures, lights, painting both interior and exterior walls of the property, flooring, electrical work etc. are called Home Improvement Loans.

Consumer Durable Loan

Loans taken by borrowers to purchase household products like television, refrigerator, washing machine, microwave, etc. are known as Consumer Durable Loans.

Since we are a platform to bridge the gap between borrowers and investors, the purpose of the loan must be clearly mentioned while applying to assist investors make an informed decision.

P2P Loan Money online

At People-Lend we constantly thrive to keep the processes simple, quick and effective. As a borrower, it is important for you to understand the entire process from registration to the repayment.

Info-Process-Borrower

At any stage, you can always contact us for any queries / assistance / guidance and we shall be glad to assist.

Fees and Interest Rates

Interest Rates

People-Lend provides a virtual meeting place for investors and borrowers and the interest rate depends on how well you negotiate with the prospective investor and the risk classification. We provide a credit score to each borrower via an internal credit assessment system which can be used by investors to determine the risk exposure and thereby an expected interest rate.

The loan requirement is usually fulfilled by multiple investors. The EMI to be paid is calculated as a cumulative of all the payments to be made to each lender.

Name of InvestorAmount loaned (INR)Interest Rate
Investor 150,00011.00%
Investor 225,00011.25%
Investor 315,00012.00%
Investor 410,00012.50%

 

Investor 1Investor 2Investor 3Investor 4Total
Interest Rate11.00%11.25%12.00%12.5%11.36%
PrincipalRs. 50,000Rs. 25,000Rs. 15,000Rs. 10,000Rs. 100,000
InstalmentRs. 2,330Rs. 1,168Rs. 706Rs. 473Rs. 4,678
Pay-outRs. 55,929Rs. 28,034Rs. 16,946Rs. 11,354Rs. 112,264

 

The pay-out chart would like this

Fee

Borrowers are charged a fee in accordance to their Risk class and loan amount as shown below:

INTEREST RATE RANGEDISBURSAL FEE CHARGED
11% to 15%Rs. 150 for first Rs.10,000 and an additional Rs.225 for every subsequent Rs.10,000.
Above 15% to 20%Rs. 250 for first Rs.10,000 and an additional Rs.325 for every subsequent Rs.10,000.
Above 20% to 25%Rs.350 for first Rs.10,000 and an additional Rs.425 for every subsequent Rs.10,000.
Above 25% o 30%Rs.450 for first Rs.10,000 and an additional Rs.525 for every subsequent Rs.10,000.
Above 30%Rs.550 for first Rs.10,000 and an additional Rs.625 for every subsequent Rs.10,000.

 

  • An additional non-refundable Admin Fee of Rs. 500 will be charged for first-time Borrowers at the time of listing and subsequent Borrowings will be levied Rs. 200 towards Admin Fee.
  • Customers who do not raise any loan will not be levied any charges. Borrowers who wish to see their Internal Credit Reports may request for it at a cost of Rs.1,000.
  • Amounts in between 2 slabs are prorated for every thousand

Late Payment Fee

The due date for paying EMIs is the 5th of every month. In case that date is missed, we send reminders till the 8th, post the following charges are levied

  • A penalty @ 24% p.a. prorated for the number of days by which payment is delayed and for the amount that is outstanding for the month, subject to a minimum of Rs. 50.
  • EMI bounce charges subject to a minimum of Rs. 250.
  • Administrative fee of Rs. 500 to People-Lend

Refund

Like our other processes, our Cancellation and Refunds policy is simple and has been designed keeping the best interests of investors and borrowers in mind. In case a borrower wants to cancel his/her registration with us, then the following proportion of the registration fee will be refunded

Cancellation of Registration but before making profile liveFull Amount
After profile is made liveNIL
During communication & negotiationNIL
Post disbursalNo cancellation allowed

Borrower FAQs

Yes. You can have a co-borrower while applying for a loan. It can be anyone who agrees to be a part of the loan agreement along with you. The rights and obligations off the borrower and the co-borrower are the same. At times, it helps to have a co-borrower as it can get you lower interest rates and higher loan amounts.

When you input a loan request on People-Lend, you are required to enter the Loan Purpose. At any point of time, you can have only one loan request under a particular Loan Purpose. Having multiple loan requests up to your credit limit is permitted provided each of them is under a different Loan Purpose.

At People-Lend, we have a proprietary credit rating system which considers data from your personal, social, educational, work, financial and past credit behavior apart from the CIBIL/Experian score to arrive at a Risk Classification. Unlike banks and financial institutions, having a graded credit rating system helps us associate a risk classification with every customer. Hence, you can apply for a loan regardless of your CIBIL score as it just one data point in our credit rating system

 Yes. You can cancel the posting provided you have not received any communication from an investor. You can write to us for details.

Once a consensus on interest rate and loan amount is reached between you and the investor, we collect and verify the required documents. Then the loan agreement is signed and the investors transfer money to the account.

The due date for paying EMIs is the 5th of every month. In case that date is missed, we send reminders till the 8th, post the following charges are levied:

  • A penalty @ 24% p.a. prorated for the number of days by which payment is delayed and for the amount that is outstanding for the month, subject to a minimum of Rs. 50.
  • EMI bounce charges subject to a minimum of Rs. 250.
  • Administrative fee of Rs. 500 to People-Lend

Further, if there is a default, then our collection agencies will try to recover the due amount from you. The investors and People-Lend might choose to initiate legal proceedings against you.

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