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.