FAQ - Peer to Peer Lending - P2P Easy

Here at P2P EASY, the bank depositor directly becomes lender to borrowers.

General Questions

Fees

  Investor Borrower
Registration Nil Nil
Create a borrower account N/A Rs 100
Create an investor account Rs 500 N/A
Increase in the wallet Nil up to first Rs 50,000
1% for additional increase
N/A
For Salaried Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 3.0%
B 3.5%
C 4.0%
D 4.5%
E 5.0%
F 6.0%
For Self employed Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 4.0%
B 4.5%
C 5.0%
D 6.0%
E 7.0%
F 8.0%
Other Chanrges Investor Borrower
In case of prepayment - No Charge
In case of change in loan amount before receiving any funding commitment post listing - Rs 100
In case of change of bank account details Rs 200 Rs 200

Fee can be paid using Netbanking/Credit Card/Debit Card Payment is fully secured on p2peasy.com

Refund

Please refer to our Refund and Cancellation Policy for any refunds and cancellation.

Q. What are the modes of repayment?

A. A borrower can make all the payment to the investors by cheque, NEFT, RTGS, IMPS, demand draft or any other mode of payment as mentioned in the Loan Agreement.

Q. How is repayment schedule calculated?

A. The repayments are in the form of Equal Monthly Installments (EMI) and the schedule is calculated based on reducing balance method and is part of the Loan Agreement. However, the first repayment installment may be different depending on the date of disbursal.

Q. Can a borrower prepay the loan amount?

A. Yes, a borrower can choose to prepay the loan fully or partially and as many times as he / she wishes as per the options available at P2PEASY. No prepayment penalty will be levied on the borrower for any repayment.

Q. What happens in case of delay in repayment by the borrowers?

A. In case of delay (i.e. missing the due date as per repayment schedule mentioned in the Loan Agreement) in repayment, additional penal interest of 24% will be imposed which will be payable to the investor(s). Please refer to the Loan Agreement for details.

Q. What happens in case of default in repayment by the borrowers?

A. In case of default, P2PEASY will facilitate collections and recovery through empaneled agencies. Investor(s) may also proceed with legal proceedings on their own.

Q. What happens to the loan in case of closure of P2PEASY due to any reasons?

A. The loan is between the borrower and the lenders and hence, it will stand as it is. There will be no impact on it.

Fees

  Investor Borrower
Registration Nil Nil
Create a borrower account N/A Rs 100
Create an investor account Rs 500 N/A
Increase in the wallet Nil up to first Rs 50,000
1% for additional increase
N/A
For Salaried Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 3.0%
B 3.5%
C 4.0%
D 4.5%
E 5.0%
F 6.0%
For Self employed Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 4.0%
B 4.5%
C 5.0%
D 6.0%
E 7.0%
F 8.0%
Other Chanrges Investor Borrower
In case of prepayment - No Charge
In case of change in loan amount before receiving any funding commitment post listing - Rs 100
In case of change of bank account details Rs 200 Rs 200

Fee can be paid using Netbanking/Credit Card/Debit Card Payment is fully secured on p2peasy.com

Refund

Please refer to our Refund and Cancellation Policy for any refunds and cancellation.

Q. What is principal protection? What % of my principal will be protected?

A. Principal protection is offered to investors so that in case of default, certain % of principal outstanding will be returned by p2peasy. Extent of principal protection depends upon the risk category of the borrower. Details of principal protection coverage is give below.

Borrower Risk Category % of Principal Protection
A 100%
B 90%
C 80%
D 70%
E 60%
F 50

Q. How do you define risk category A to F?

A. Risk categories are defined based on comprehensive credit risk evaluation and overall credit score of the borrower.

Risk Category Interest Rate Range
  Minimum Maximum
A 12% 14.99%
B 15% 17.49%
C 17.50% 19.99%
D 20% 22.49%
E 22.50% 24.99%
F 25% 36%

Q. Are there any Terms & Conditions for principal protection

A. Following Terms & Conditions are applied on investors to determine their eligibility

Investor will assign the rights to p2peasy to take legal action against the borrower for the recovery of loan

Maximum amount of Principal protection depends on the fund available in the investor protection reserve.

p2peasy reserves the right to update/modify the clauses for Principal protection.

Q. What if in future, borrower repays the full amount then will I get the interest back

A. We would continue our effort for recovery even after returning the principal and in case borrower repays the entire amount then investor will get the remaining principal and interest after adjusting the recovery charges

Q. Does investor need to apply separately for Principal protection

A. Investors do not need to apply separately for Principal protection. When you invest in any loan then based on the risk category and applicable policy you automatically get covered inn the prevailing Principal Protection policy.

Q. How do you defined default. After how many months will I get my principal if default happens?

A. If three consecutive EMIs become overdue then we will start the legal process for recovery.

If borrower does not start paying the EMI, 3 months after the recovery process has been initiated then it will be treated as default.

Post which % of principal outstanding, based on the borrower risk category will be paid to investors.

Final amount paid under principal protection will depend on fund availability in the Investor protection reserve

Q. How safe is to investment at P2PEASY?

A. P2PEASY has placed stringent screening criteria for each loan to increase the safety of an investment. It collects various documents from the borrowers pertaining to their identity, address, income, credit rating etc. P2PEASY also collects postdated cheques (PDCs) as security to be used in case of late payment or default. In addition, both the borrowers and the lenders are bound by legally enforceable Loan Agreement. During the process of signing the Loan Agreement, P2PEASY may also conduct physical verification of the borrower to be doubly sure of veracity of the borrower.

With a strong process in place, we expect to have robust loans listed at P2PEASY. However, these loans are still subject to default risks. Hence, P2PEASY will also take services of reputed collection agencies to recover any default

Q. How long does it take to find the borrowers?

A. This primarily depends on investor’s return vs. risk requirements. However, an investor may also contact the borrowers through P2PEASY messaging system to request them to increase their interest rates in order for their loans to meet investor’s requirements.

Q. What is P2PEASY Rating?

A. P2PEASY categorizes each of the borrowers in one of the six categories from A – F, A being the category with the strongest credit profile and F being the weakest. The P2PEASY Risk Category is assigned based on P2PEASY's proprietary Credit Score Model which is driven by data such as credit score from institutions such as CIBIL, borower's socio-economic factors, financial behavior etc.) by using P2PEASY's proprietary Credit Score Model. This rating is visible to the borrowers as well as the investors.

Q. What is an P2PEASY Recommended Interest Rate?

A. An P2PEASY Recommended Interest Rate is ‘risk adjusted interest rate’ based on the P2PEASY Rating and is calculated for each of the borrower by our underwriting team. A borrower can borrow at an interest rate which is higher than or equal to this rate. This rate is visible to all the borrowers and the investors.

Q. Can an Investor increase / change the interest rate?

A. No, the interest rate is set by the borrowers so that all the investors invest at the same interest rate following our principal of “one loan, one interest rate’. However, the investors can communicate with the borrowers using P2PEASY messaging system to convey the borrowers their wish to invest at their desired interest rate. If a borrower agrees and increases the interest rate, the same will be applicable to all other investors for that loan.

Q. What is a Loan Agreement and why is it important?

A. A Loan Agreement is a legally binding and enforceable document between the borrower and the investors. It clearly outlines the recourse for all possible events as envisaged by P2PEASY. The events include, investors not funding the loan, delay in repayment, defaults etc. This agreement is signed after paying requisite stamp duty to make it legally enforceable. Each party is bound by it.

Q. When does an investor need to transfer the money?

A. Once a loan is closed by the borrower, the requisite documents have been collected, verification process has been successfully completed and the Loan Agreement has been signed, investors are obligated to transfer money to the borrower's bank account

Q. How can an investor change the bank account details?

A. Post registration an investor can change the bank account details by contacting P2PEASY and payment of Rs. 200 as convenience fee. However, once any Loan Agreement has been signed by an investor, the investor will not be able to change that account for the purpose of repayment of that loan to avoid any sort of money laundering. Though, for new loans, the investor can change the account details.

Q. Can an Investor cancel the commitment to fund a loan?

A. An investor can cancel the commitment only in case there is misrepresentation / fraud committed by a borrower. In no other case, an investor will be allowed to cancel the commitment. In case an investor does so, P2PEASY may impose severe penalty on that investor including barring him / her from conducting any new transaction on the portal.

Q. Can an investor lend to more than one borrower?

A. Yes, an investor can lend to multiple borrowers at a time.

Q. How can an investor increase the size of Wallet?

A. An investor can increase the Wallet size on payment Rs. 10 for every by Rs. 1,000. Please note that Wallet size can be increased in the multiple of Rs. 1,000 only.

Q. Is interest income earned at P2PEASY taxable?

A. Yes, interest income will be taxed as regular income and the investor will be liable to pay the same. P2PEASY will provide an annual interest income statement to the investor which he / she can refer to pay the taxes.

Q. What are the modes of repayment?

A. A borrower can make all the payment to the investors by cheque, NEFT, RTGS, IMPS, demand draft or any other mode of payment as mentioned in the Loan Agreement.

Q. How is repayment schedule calculated?

A. The repayments are in the form of Equal Monthly Installments (EMI) and the schedule is calculated based on reducing balance method and is part of the Loan Agreement. However, the first repayment installment may be different depending on the date of disbursal.

Q. Can a borrower prepay the loan amount?

A. Yes, a borrower can choose to prepay the loan fully or partially and as many times as he / she wishes as per the options available at P2PEASY. No prepayment penalty will be levied on the borrower for any repayment.

Q. What happens in case of delay in repayment by the borrowers?

A. In case of delay (i.e. missing the due date as per repayment schedule mentioned in the Loan Agreement) in repayment, additional penal interest of 24% will be imposed which will be payable to the investor(s). Please refer to the Loan Agreement for details.

Q. What happens in case of default in repayment by the borrowers?

A. In case of default, P2PEASY will facilitate collections and recovery through empaneled agencies. Investor(s) may also proceed with legal proceedings on their own.

Q. What happens to the loan in case of closure of P2PEASY due to any reasons?

A. The loan is between the borrower and the lenders and hence, it will stand as it is. There will be no impact on it.

Fees

  Investor Borrower
Registration Nil Nil
Create a borrower account N/A Rs 100
Create an investor account Rs 500 N/A
Increase in the wallet Nil up to first Rs 50,000
1% for additional increase
N/A
For Salaried Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 3.0%
B 3.5%
C 4.0%
D 4.5%
E 5.0%
F 6.0%
For Self employed Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 4.0%
B 4.5%
C 5.0%
D 6.0%
E 7.0%
F 8.0%
Other Chanrges Investor Borrower
In case of prepayment - No Charge
In case of change in loan amount before receiving any funding commitment post listing - Rs 100
In case of change of bank account details Rs 200 Rs 200

Fee can be paid using Netbanking/Credit Card/Debit Card Payment is fully secured on p2peasy.com

Refund

Please refer to our Refund and Cancellation Policy for any refunds and cancellation.

Fees

  Investor Borrower
Registration Nil Nil
Create a borrower account N/A Rs 100
Create an investor account Rs 500 N/A
Increase in the wallet Nil up to first Rs 50,000
1% for additional increase
N/A
For Salaried Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 3.0%
B 3.5%
C 4.0%
D 4.5%
E 5.0%
F 6.0%
For Self employed Borrowers
Loan processing fee payable before physical verification.
(Minimum processing fee is Rs 2000)
Nil
Risk Category % Fees
A 4.0%
B 4.5%
C 5.0%
D 6.0%
E 7.0%
F 8.0%
Other Chanrges Investor Borrower
In case of prepayment - No Charge
In case of change in loan amount before receiving any funding commitment post listing - Rs 100
In case of change of bank account details Rs 200 Rs 200

Fee can be paid using Netbanking/Credit Card/Debit Card Payment is fully secured on p2peasy.com

Refund

Please refer to our Refund and Cancellation Policy for any refunds and cancellation.

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