Peer to Peer loan (P2P loan) is a great new source of loans if you are seeking a loan from anywhere across the country. This loan will be sourced from Individual Lenders who will lend money to the borrower at a nominal interest rate. Currently the only source of credit for a loan seeker like you are formal institutions like banks and NBFCs. The norms at these institutions are quite strict while the interest rates are high when you seek an unsecured personal loan. Peer to peer lending through our platform allows you to seek loans from normal individuals like yourself from across the country. It is a mechanism which allows crowd-funding of a loan request by people who have money to invest. It is the same a borrowing from a relative or friend at an interest rate, all underwritten by our platform which allows only the most genuine and trustworthy borrowers and lenders to participate. We also work with banks and NBFCs and cover the entire range of lenders providing with the best opportunity to get a loan with the best interest rate possible.

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Email: support@cashkumar.com

How do P2P Loans work?

  • You need to register on this platform with your complete details and create an account
  • Put in your loan request with requisite personal and financial details as well as uploading the required documents
  • Based on your eligibility, we will give you a grade which brackets you in an interest rate basket and your case will be showcased to lenders on the platform
  • Lenders can agree to lend you between 5% to 25% of your total loan requirement and we will provide a time limit till the lending reaches agreed limit set by you
  • Once the requirement is fulfilled, we arrange for contracts to be signed between you and the lenders and arrange for the payment to reach you
  • You will need to sign PDCs for the EMIs due to each lender and ensure the payment is cleared in time every month

How do I borrow a P2P Loan?

Getting your loan requirement fulfilled is a simple task on our platform if you meet the eligibility criteria given below. We have automated every process so that you don’t have to break a sweat from registration to disbursal. As soon as you fill in your personal and financial details, the scientific algorithm on our platform will grade and assign your case into an interest basket. If you agree to the rate of interest, the case will be displayed to numerous individual and institutional lenders on our platform. To speed up the process you will also be allowed to state your case and its urgency to the lenders with a minimum cut off amount for the loan to be sanctioned. Once the cut off or the full amount are reached you will have an opportunity to proceed with the request. We ensure that there is no hassle in the entire process by handling the paper work as well as the disbursal.

Main Benefits to P2P Loan Borrowers

  • Your opportunity to participate in a new financial system and seek a loan from an extra source of credit
  • You can escape the strict terms and conditions imposed by banks/NBFCs and seek loans at a better rate of interest
  • You will have the facility to seek a personal loan no matter where you are based in the country from lenders across various locations
  • You will gain savings and reduce loan costs through our reduced charges on expenses like loan processing fees which is facilitated by use of technology
  • You will be able to pre-pay or part pre-pay a loan at no charges and at your own will after payment of atleast 3 EMIs

How are interest rates calculated for P2P Loans?

The interest rates for P2P loans are calculated by an algorithm developed after studying the practices followed by some of the best banks and NBFCs in India. It uses all your personal and financial data to assign the best grade which indicates your creditworthiness. The data which is used to assign the grade encompasses a lot of factors including CIBIL rating, salary, DBR, ABB etc presenting the fairest rating possible. The grades then attract pre-assigned interest rates which have been decided based on the most generous rules of banks and NBFCs. This ensures that in most cases you get a rate better than that being offered by current sources of credit. The grade assignment also keeps in mind cases where there is no credit history reflecting as 0 or -1 on CIBIL rating.

How are interest rates levied on my P2P loan?

The rate on interest for your peer to peer loan is always based on the principle of reducing or diminishing balance. This practice is followed by the entire formal financial sector and is the most rational way of calculating interest in favour of the borrower. This method insists that interest is calculated only on the principal amount remaining in the loan after the payment of previous EMIs. This leads to a case where you pay interest only on the amount owed at that particular point in time. As time goes on, the interest component in your loan decreases while the principal component increased helping you pay off the loan quicker. It is also helpful when you pre-pay or part pre-pay a loan as this decreased your interest burden.

To give an example consider a borrower has taken a loan of Rs. 5,00,000 with an interest rate of 15% which needs to be repaid in 5 years. The EMI in this case would be Rs. 11,895/- per month. In the 1st year, he pays a total EMI of Rs. 1,42,740 of which Rs. 72,596/- goes for interest and the balance Rs. 70,144/- goes towards interest. Now the interest rate is calculated at 15% only on the balance principal amount i.e. Rs. 4,37,404/- .

This is as opposed to a flat rate which assumed a fixed interest component based on the full principal across the tenure of the loan. The method used by certain lenders is not conducive to you as a borrower even in the actual figure seems lesser than a reducing balance rate of interest.

Will I be able to pre-pay or part pre-pay my P2P loan?

We believe that you should get the best deal possible on a loan and so pre-payment and part pre-payment is allowed at no extra charge provided 3 EMIs have been paid. This allows you the flexibility to close the loan much before the designated tenure provided you have the funds. With the rate being calculated on the principle of reducing balance, you will benefit with a reduced interest burden. The lenders also benefit by having liquid funds coming back into their account which can be rotated again.

For instance if you have availed a loan of Rs. 1,00,000 and paid 3 instalments as part of the EMIs deciding to pay back Rs. 25,000 in the next instalment. Your interest will then be calculated on the outstanding after deducting the payment towards the principal in the previous 3 EMIs and the 25k minus interest for the 4th instalment. It ensures that your interest burden is lower when you pay the next EMI on the loan leading to a faster repayment of the loan amount.

You will have to pay atleast 10% of the loan amount as pre-payment as a single instalment to avail this benefit.

Who is eligible to be a P2P Loan Borrower?

The peer to peer lending system provides an opportunity for all kinds of individuals to get a loan- even those currently out of the purview as per the rules of formal institutions. We encourage the disenfranchised to avail a source of credit and present their case to lenders. But given this, we still need to impart a sense of confidence to lenders that they will recover their investment. Hence some basic eligibility criteria are necessary for you to participate in this system. While these criteria are not as hard as those imposed by formal institutions they will still follow similar norms. Your profile is also categorized on the basis of the underwriting criteria so that a fair deal is reached between borrowers and lenders. The basic norms required from you to apply for a loan are as follows:

Borrower Criteria

  • You are a Resident Indian
  • You earn a minimum salary of Rs. 6 lakhs a year
  • You have completed 25 years of age at the time of registration
  • You have a PAN card and have filed income tax returns the previous year
  • You have a bank account in any nationalized or private bank in India
  • Total obligations (including EMI for requested loan) should not exceed 60% of total monthly income
  • A CIBIL Score of 650 or excellent profiles which are CIBIL 0 or -1
  • Monthly net income of Rs. 20,000 and above
  • Average Quarterly Bank Balance of 1.25 times the EMI amount (calculated as per fixed dates

Documents Required

  1. Two Photographs
  2. PAN Card
  3. ID proof (any of PAN Card, Aadhar Card, Voter ID, Passport)
  4. Address Proof (any of Passport, Aadhar Card, Voter ID, Rental Agreement, Bank Statements, Mobile Bill)
  5. Bank Statements of last 6 months

Once this basic norms have been met, there will be other factors which decide the grade and the interest bracket your profile will correspond to. These have been researched through our experience of working with some of the best financial institutions and present the most valid route of calculating the rate of interest. Our algorithm will consider the following aspects as well as a unique social score to assign your case to a grade and interest bracket. The data and information includes but is not limited to:
City, Company, Monthly Salary, Position, Experience, CIBIL Score, CIBIL Report (for past credit history), Current obligations, AQBB (Average Quarterly Bank Balance), Social Score etc

We hope to bring you the best deal available on loans and wish there is no cause for default. But we also need to protect the interests of lenders who have invested their hard earned money to help you. In case of a default and late payment, a higher interest will be imposed on the outstanding amount. When a loan is completely defaulted, all actions deemed legal under the terms of the contract will be taken to recover the full amount along with interest.

What do you charge a borrower for a P2P Loan?

We wish to present you with the best loan deal available where the charges for processing the loan are as low as possible. But since there is a lot of co-ordination involved, there will be a small fee charged for making everything happen. This will still be much lesser than that charged by a financial institution. We pass on all the cost savings from the use of technology to you as a borrower. As a tech based service we ensure that there are maximum cost savings on the loan deal.

The fees charged will be up to the tune of 2% of the loan deal. If you are borrowing Rs. 1,00,000 then the processing fee will come to Rs. 2,000 which will be paid when the loan amount is handed over to you. An initial charge of Rs. 1000 will be levied for checking your eligibility including CIBIL check, background check, social credit score etc. This will be deducted from your processing fees if your loan request is met. If you register before 31st of March 2016, the initial charge will be a discounted amount of Rs. 750.