Founded in 2013, Faircent is an online peer-to-peer (P2P) marketplace for lending and borrowing. The website connects prospective lenders with borrowers looking for personal loans. The P2P lending market is merely a decade old, which is why many people find it difficult to trust Faircent and other similar avenues for borrowing money.
Faircent Business Loan Features
Faircent offers transparency and fairness throughout the lending and borrowing process. Here’s how it works:
- As per the RBI/SEBI guidelines, only resident Indians can avail this service. At present, the guidelines prevent NRIs from taking part in this marketplace. However, this may change in future.
- As a potential borrower, you’ll need to comply with RBI/SEBI’s KYC norms and provide comprehensive documentation to verify your identity. Only those who clear this verification process are permitted to register as borrowers on Faircent.com.
- After a borrower has been verified, they can begin interacting with prospective lenders and try to come to terms regarding interest rates, loan duration and repayment terms.
- Once an agreement has been reached, the borrower and lender sign a formal contract, detailing the financial transaction and liabilities.
- Repayments can be made online through NEFT/IMPS/RTGS or by issuing post-dated cheques. The website has a dashboard to track repayments online.
- With a transparent revenue model, the website doesn’t charge any loan processing fees. Only a small listing fee of ₹1,500 is charged for loan amounts up to ₹1.5 lakhs.
- The biggest limitation is that this service is currently unavailable for NRIs
- The website charges an ₹500 as fee from borrowers who wish to register before the verification process. In case, you are rejected, this fee isn’t refunded.
- Convenient and flexible borrowing option
- No loan processing fee
- Not available for NRIs
- ₹500 non-refundable registration fee
- You are on your own in drafting out the loan agreement
Do you have any feedback/experience with Faircent business loans? Please share with us in comments.
Faircent Business Loans
Is Faircent a good alternative to traditional banks and NBFCs for business loans? Here’s a look at what it offers.