CASHKUMAR
Cashkumar is a Non-banking Financial Company (NBFC-P2P). It brings together people who need money and people who have surplus/idle money to facilitate a loan transaction between them.
Cashkumar obtained a license from the Reserve Bank of India (RBI) to operate as a Non-banking Financial Company – Peer to Peer (NBFC-P2P) on 10th July, 2018. Read more here, https://cashkumar.com/cashkumar-nbfc-p2p-cor-rbi
Etyacol Technologies Private Limited operates with the brand name Cashkumar.
Cashkumar is a two-sided online marketplace.
To know more about the Borrower side, click here, Borrower FAQs
To know more about the Lender side, click here, Lender FAQs
One can either be a borrower or a lender at a point in time.
Ensuring your privacy & safety is important to us. Cashkumar shall keep your information private and confidential and only authorised Cashkumar employees/authorised service providers shall have access to only specific information necessary to perform their direct duties. Further, the Secure Sockets Layer (SSL) seal that you see on our website indicates an encrypted internet connection. All your passwords are stored in an encrypted form on the database and not even Cashkumar personnel have access to these.
We would be delighted to help with your questions. Do write to us at support@cashkumar.com
You can be a borrower on Cashkumar if:
It is simple. You can apply for a loan here, https://cashkumar.com/application/signup. You will be asked to enter a few details like loan amount, salary, age, city, PAN. You will then be able to see a provisional loan offer. After accepting the offer and submitting a few documents, our team will help you through the credit process leading to a final offer if approved.
As a first-time customer you can currently borrow anywhere between ₹ 20,000 to ₹ 1,00,000 depending on factors such as personal profile, credit history and financial record. Tenure of the loan is dependent upon the amount that you borrow. Standard tenure for our loans range from 3 months to 12 months.
Your loan is funded by a group of our registered lenders.
Interest rate ranges from 18% to 30% per year flat
We charge a processing fee from the borrower on every loan which is facilitated through the platform. The specific amount varies according to the loan amount and is specified in the final loan offer sent to you for acceptance.
It typically takes approximately 7 working days from application for the funds to be transferred into your account although our average time for loans disbursed to date is much lower. Note this not a promise and loan disbursals might take longer depending on receipt of documents, your response time and lender funding.
You have the option to pre-close a loan at any time after paying three (3) EMIs by paying the outstanding principal, accrued interest and late fee/outstanding dues (if any) at the time of pre-closure. However, in case of pre-closure of the loan before three (3) EMIs, you will have to pay the outstanding principal as well as accumulated outstanding interest for 3 months. We do not impose any pre-closure charges in either case.
EMIs are, as per policy, deducted directly from your account through the NACH mandate collected at the time signing agreements. In case the NACH mandate is not accepted, reminders are sent by mail to notify upcoming dues and you can pay through NEFT, IMPS or an online wallet.
We understand that difficulties arise and might prevent borrowers with genuine intentions to pay back on time. Cashkumar follows a path of considered leniency allowing you time to repay the EMIs with appropriate late payment penalties. If the loan is still at default, we take all measures to recover outstanding dues as adhering to the guidelines issued by RBI and Code of Bank’s Commitment to the Customer issued by Banking Codes and Standards Board of India.
An EMI or an Equated Monthly Instalment is a periodic remittance you make to repay the money borrowed from lenders. An EMI comprises a part of the principal and interest on the loan.
The EMI you pay is computed as per the formula if the rate is fixed and flat:
[{(Loan Amount*Rate of Interest per annum)/(100*12)}+(Loan Amount/Tenure in months)]
Yes, you can have a co-applicant for a loan. In fact, it is better to have a co-applicant because the combined salary increases your eligibility.
A credit score is the output of an analysis of your historical repayment records on direct and indirect obligations. This score indicates the level of risk in extending credit to any individual. You can find out more on the websites of Credit Information Companies (CICs).
A CIC or credit bureau is a company licensed to collect and research comprehensive credit information of individuals/entities/companies from financial institutions to allot a risk score. Institutions in turn use this score and records to decide on applications for various types of credit.
There are four licensed CICs/credit bureaus in India:
The information provided here is merely generic information about the company, products and process. All loans transacted through the platform are solely governed by the provisions contained in the loan agreement signed by you. It is the only legally valid document containing stipulations which regulate the loan contract. You are advised to read the agreement and only consult it in any matter pertaining to the loan.
Peer-to-peer (P2P) is a lending mechanism where unfamiliar individuals/entities are brought together on a single platform to carry out a loan transaction. The platform screens the loan seekers by verifying their credit, financial and other parameters. Registered lenders can advance sums (according to standards set for min and max investment) and loans are repaid monthly over a fixed tenure.
Loan transactions follow the steps outlined below:
The main aspects lenders should consider in P2P investments are risk and returns. Cashkumar has built its loan products to minimize risk by catering to only salaried segment, restricting to small loans with short tenures and low minimum investments. Returns on the platform are lucrative.
If you are an individual above 18 years of age, an Indian citizen residing in the country, an institutional investor or HUF, then you can become a lender in by registering on the platform and submitting KYC and bank details.
Cashkumar provides multiple benefits to individuals new to P2P lending as well as seasoned investors including:
RBI regulations do not allow Non-Resident Indians to participate and invest on P2P platforms in India.
Documents required for lender registrations include an ID Proof (PAN Card mandatory), address proof (temporary or permanent) and bank account details.
According to RBI guidelines, there will be a trustee appointed who will be a guardian of lenders funds and investments. All monetary transactions are approved and initialized by the trustee. In the event of the company’s liquidation, the trustee will be the guardian of funds and collect pending repayments. We have a business continuity plan detailed to ensure pending EMIs are recovered as per schedule. In the event operations shut down, the Trustee and the liquidator will work to recover loans over the period of the loan tenure.
The purposes for which the borrower takes a loan from Cashkumar include marriage, debt consolidation, medical needs, travel requirement, home renovation, deposit payments etc.
The rate of interest on a loan can vary from 18% to 30% per annum. Interest rate thus charged is flat and fixed. Late fees on EMI payments are also charged pro rata on the loan amount for the number of days delayed.
As an illustration consider a borrower who has taken a loan of Rs. 50,000 with an interest rate of 24% per month which needs to be repaid in 10 months. The EMI in this case would be Rs. 6000/- per month of which 5000 would be towards the principal and 1000 towards interest. If you have invested Rs. 5,000 in this loan then you will get Rs. 600 every month amounting to a total of Rs. 6,000 over the entire tenure of the loan. This is a return on investment of Rs. 1,000 in a 10-month period. The returns are much higher if every EMI is reinvested into other loans.
The personal loans product on Cashkumar has a tenure between 3 - 12 months. Same is decided based on the borrower profile and loan amount.
The loan amounts on Cashkumar range from Rs. 20,000 to Rs. 1,00,000 for new borrowers. Existing borrowers with good repayment track can avail a loan up to Rs. 1,50,000. Maximum loan amount that can be availed by any borrower depends on their eligibility as per company policy.
In case a borrower is unable to make payment on the EMI date they must pay late fine with the same interest rate on a pro-rata basis to the number of days delayed.
The minimum investment amount on Cashkumar is currently Rs 1000.
As per RBI guidelines the principal outstanding per lender should not be more than Rs 50,00,000 across all P2P platforms.
Per borrower you can invest a minimum of Rs 1000 and a maximum of Rs 20,000 or 25% of the loan amount whichever is higher.
You need not open a new account and can transfer funds from existing account. Cashkumar creates a virtual account number in its escrow account for registered lenders. Fund transactions happen using this virtual account number to identify the exact lender and keep accurate track.
A lender can transfer funds into the escrow account via NEFT and IMPS.
The investment window is opened at 2 pm, 4 pm and 8 pm. You can login during those times to check profiles and make investments. Alternately Cashkumar also allows you an auto-invest option.
These time slots are issued so that all the lenders are given equal opportunity to invest in cases at the same point of time.
It is a feature where the funds of lenders are pledged by the system automatically. In this situation the lender need not login and manually check the profiles to invest.
A lender can unfund their investment only if the borrower delays sending the agreements and supporting documents. A lender can contact the lender relations manager if cases are overdue for more than 7 working days.
Lenders can view the details of the loan investments on their dashboard under my investments tab.
Cashkumar does not charge any registration fee upfront for lenders to participate.
The lender will be charged a facilitation fee which range from 0.5% to 1.5% of EMIs recovered. The fee will vary depending on the borrower profile and loan amount on a case to case basis. The amount will be clearly displayed for each loan featured on the platform. The fee would be deducted on a monthly basis as and when the EMI amount is successfully recovered.
Please refer to the example below:
If you invest an amount of Rs. 10,000 in a borrower for 10 months then the monthly EMI comes up to Rs.1200 (Principal – 1000 and Interest – 200). If a rate of 0.75% is charged on the loan by Cashkumar then the facilitation fee would be Rs.9 (0.75% of 1200 = 9) per month. The total on collection of all EMIs on time over the tenure of this loan will be Rs.90 (0.75% of 12000) for 10 months.
The interest, late fine and miscellaneous fees earned by you are taxable and need to be declared to the authorities. Cashkumar as an NBFC is obliged to share this information with the RBI and other statutory authorities.
Cashkumar does not make any TDS deduction right now.
Yes, borrowers can pre-close the loan at any time after paying 3 EMIs by returning the outstanding principal and accrued interest. No additional charges are imposed on the borrower if the loan is pre-closed after 3 months. In case a borrower wishes to pre-close before 3 months then they must pay the outstanding principal plus outstanding interest of 3 months.
In case of pre-closure, a lender would be receiving the interest of a minimum 3 months and can rotate the amount in a very short period over multiple loans.
So, if you have advanced Rs. 10,000 @ 24% to a borrower which is returned in 3 months, you get returns of Rs. 600 apart from the principal.
Loan repayments are made in the form of EMI’s (Principal + Interest) and get deposited in the lender escrow account. While the standard repayment method is a NACH (National Automated Clearing House) debits, borrowers are offered multiple avenues to make payments including NEFT, IMPS, Cheque and mobile wallet. EMI collections via NACH debit are done on 2nd, 7th and 10th of every month and are updated in lender’s escrow account in subsequent days.
Yes, you can withdraw the unutilized money from the escrow account. You can raise an online withdrawal request from your login. The amount will get transferred to your bank account within 24 to 48 working hours.
Borrowers on the platform are approved after following a rigorous credit evaluation process. The underwriting algorithm on the platform grades borrowers according to their risk bucket considering a variety of factors including but not limited to Age, Gender, Company, Monthly Salary, Position, Experience, Credit Score, Credit Record, Current Obligations, AQBB (Average Quarterly Bank Balance), Social Score etc.
The minimum criteria we look at before accepting borrowers are:
Cashkumar considers your investments a solemn responsibility and undertakes its best efforts to recover money from defaulting borrowers. We have an in-house team, tie-ups with collection agencies and legal advisors to provide a complete environment for successful recovery of loans. Any and every measure is undertaken conforming to the directions for loan recovery provided by the RBI.
To know more about the recovery process, kindly log into your Cashkumar lender account.
Yes, we have referral bonus in Cashkumar. Refer a lender and for the 1st Year get 0.5% of the amount disbursed by the referred lender with a maximum cap of 5,000 in a year per referral.
You can call us at 8296960876 or email us at lenders@cashkumar.com
You can escalate issues write to complaints@cashkumar.com and flag off any grievance