People-Lend is a peer-to-peer lending platform which allows borrowers to avail loans from investors at rates commensurate with their Risk Class. Investors get an opportunity to earn up to 30% on their investments. Being a technology enabled digital platform, the entire process is quick and simple.

Traditionally, banks and financial institutions would collect funds from people in the form of deposits at lower rates and disburse loans at comparatively higher interest rates. Peer-to-Peer lending by the virtue of removing these intermediary institutions, can offer an opportunity for investors to make higher returns and borrower to get cheaper loans.

We have a simple but effective registration and verification process. The documents needed to be submitted are on lines of the RBI/SEBI regulations for banks and financial institutions. A secure and effective communication system allows investors and borrowers to make offers to each other and reach a consensus.

Registration and Documentation

The registration and documentation procedure is similar for investors and borrowers. This includes filling up an online registration form, submission of scanned KYC documents (which might vary for investors and borrowers) and payment of registration fees of Rs. 1500.

Once the form and the documents are verified, the borrowers can post their loan request and investors can start searching for profiles and showing interest in investing.

Search and Agreement

Borrowers in the loan request posting, have to mention the purpose for raising a loan, amount requested and tenure for which they want it. After this is done, they can start sending funding request to Investors.

Investors get to see these Loan requests along with Borrower’s Risk Class, loan details and some personal information and can send requests to fund them.

The communication system allows investors and borrowers to negotiate and counter-negotiate till they reach a consensus. Once a borrower has a commitment of around 50% of the loan requested, a disbursal can be requested.



Disbursal and Repayment

Post receipt of a disbursal request from a borrower, the documentation is completed and subsequently the loan is disbursed. Post-dated cheques towards security are collected for the first EMI. All subsequent transactions are done online via our Nodal account. Borrowers have a fixed date of the 8th of every month to pay the EMI; post this late payment fees are levied.

You can check the detailed process here.

The entire transaction happens through our Nodal account held with Kotak Mahindra Bank Ltd. Investors have to deposit money that they wish to invest in their Nodal account which on disbursal is transferred to the borrowers account by People-Lend. On the other hand, borrowers need to deposit the instalment amount in their nodal accounts which is transferred the Investors personal account by People-Lend too.
Read more here.

We have a separate cancellation and refund policy for cancellation of registration for both investors and borrowers which can be read here.

What We Do

People-Lend provides a platform to provide investment opportunities to investors and make funds available to borrowers.

Marketing

The journey begins with finding people who are genuinely interested in investing or borrowing. We try to get borrowers with varying risk classifications on-board so that the investors can choose according to their risk-return plan. We also need to strike a balance between the two to maintain satisfaction levels. Our task starts with spreading the word around and finding investors who want to benefit from the risk-reward system of P2P lending and borrowers who are looking for cheaper loans (as compared to banks / FIs) and get them registered with us.

KYC Verification & On-Boarding

Once we have a registration request from a prospective borrower or investor, we start the on-boarding process. Though RBI / SEBI does not regulate the P2P market yet, we follow the guidelines set by them for banks and financial institutions. We collect Personal, Social, Professional and Financial information with supporting documents to ensure that we know our members well.

Credit & Risk Assessment

Unlike banks, who primarily depend on credit rating agencies like CIBIL, we have a proprietary credit rating system which has multiple data points to determine the Risk Class of borrowers. This is made available to investors to help them make an informed investment decision.

Documentation & Disbursement

Once a borrower and investor come to an agreement, physical verification of the documents is conducted which is followed by signing the agreement. Both parties don’t meet physically. Once this is done, the loan is disbursed.

Repayment Operations

The repayment starts from the following month. EMIs are scheduled to be paid between the 5th and 8th of every month.On receipt of the EMIs, we transfer the funds to the investor’s personal account on or before the 10th day of the month

Follow up on delayed / missed payments

Reminders are sent to borrowers between the 5th and the 8th to ensure that the repayment is done on time. These are done telephonically and by email.

Collection and Recovery

If a borrower fails to transfer the EMI amount to the virtual account, collections and recovery process is initiated. We follow the guidelines set by RBI for the same. We have tied-up with agencies with certified and trained professionals for the collections & recovery activities.

Loan Closure

On successful repayment of all the EMIs, the loan is closed. The borrower has an option of creating another loan request under the same purpose. The investor, can choose to withdraw the funds or reinvest.

People-Lend is merely a platform that helps borrowers and investors take informed decisions. We provide processed information to both parties and do not influence either of them to engage with each other. Also, our advisory services are provided on demand to assist members in understanding the finer aspects of P2P lending. As a customer, you are the sole decision maker for investing or borrowing. We do not guarantee a minimum rate of return to our Investors nor do we guarantee availability of funds to all our Borrowers. For further details, please refer to the Terms & Conditions section.

Process

How-It-Works--Process

Investors and borrowers have to complete the registration process of filling up the online form, submitting documents, completing the offline process and paying the one-time registration fee. We verify the form and the documents and subsequently provide users with a user login and password to access the portal.

Borrowers, on logging in can enter a loan request mentioning the purpose of the loan, amount and tenure for which they seek the loan. They can also send funding requests to investors.

Investors can view all loan requests along with borrower’s Risk Class, loan details and some personal information. They can also send requests to fund these.

There is a two-way communication system to facilitate negotiations between borrowers and investors.

On successfully raising a commitment of 50% loan amount requested, the borrower can request for a disbursal. On receipt of a disbursal request, we initiate the documentation process. Once that is successfully completed, the loan is disbursed. We request post-dated cheques from borrowers towards security and repayment of the first EMI. All subsequent transactions happen online.

EMIs are paid by borrowers by 5th of every month, failing which reminders are sent for another 3 days. Thereafter late payment fees, collections and recovery come into force.

Transaction

We have a Nodal account with Kotak Mahindra Bank Ltd. for all transactions. Once you successfully register with us, a virtual account for transactions will be set up for you.

Investors

Post registration, Investors are required to deposit the amount they wish to invest in their virtual account. Once you sign an agreement for funding a loan, the amount will be transferred by People-Lend from your virtual account to the borrower’s personal account.

Borrowers

Borrowers will receive the disbursal in their personal accounts. However, the EMIs will have to be deposited in their virtual accounts which will be transferred by People-Lend to the investor’s personal account.

Funds Transfer & EMI

We have defined certain timelines to ensure smooth operation of the entire process.

  1. Investors, post registration have to deposit money they plan to invest in their virtual account with us.
  2. Once an agreement has been made with the borrower and documentation is complete, loan will be disbursed to the borrower’s personal account by us within 48 hours.
  3. Borrowers must deposit the EMIs in their virtual accounts with us by the 8th of every month.
  4. Monthly payments will be credited to the investor’s personal account by the 10th of the month.

 

Delayed payments and default
A prorate penalty of 24% p.a. is levied for payments delayed beyond the eighth day of every month, subject to a minimum of Rs.50. If the investor’s account is debited for any EMI bounce charges, then the borrower will have to bear the same, subject to a minimum of Rs.250. Further, an administrative fee of Rs. 500 will have to be paid by the borrower to People-Lend.

Registration

As an investor or a borrower, registering with People-Lend is as simple as 1-2-3.

1

Visit our website and fill the online registration form completely

2

Submit the duly filled offline form and scanned copies of documents as mentioned on our website

3

We verify the details and grant you access to our portal.

We strictly adhere to the KYC guidelines set by RBI and SEBI for banks and financial institutions in India.

To cover the administrative costs, we charge a one-time fee of Rs. 1500 at the time of registration.

Register as an

INVESTOR

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Cancellation & Refund

At People-Lend, the Cancellation and Refunds policy has been designed keeping the best interests of both the investors and borrowers in mind. In case you want to cancel your registration with us, then the following proportion of the registration fee will be refunded:

Before making profile live Full Amount
After profile is made live50% refund
During communication & negotiationNIL
Post disbursalNo cancellation allowed