Indian online P2P lending platform Faircent.com announced a new semi-secure student loan product in collaboration with Bangalore-based micro-lending startups. Lenders ay also opt for a partly-secured alternative-investment opportunity that delivers a higher return. Under the partnership, college students may fund purchase of items such as laptops, books and smart mobile, by registering their loan requirements on the platform at a “reasonable rate” with a flexible loan period ranging between 6 and 36 months.
“Faircent.com has, since its inception, sought to make online P2P lending a viable and attractive investment option for lenders in India. Through a constructive synergy, we have built an innovative product for lenders to further diversify their portfolios by investing in these semi-secured loans and earn high gross returns,” clarified Faircent.com Founder and CEO Rajat Gandhi. “This is also the first time we are dedicatedly targeting college students as a borrower demographic on our platform. We are enthusiastic about reaching this largely overlooked segment and exploring this potential market for financial products.”
Lenders can also build a diversified portfolio on Faircent by funding these loans which will be partly secured against default as the micro-lending startups will provide a certain percentage of the principal as a first-loss guarantee in case of default. Students are registered after due diligence, with on-campus ambassadors verifying details of the students applying for loans. Personal guarantees from parents/guardians are also taken to counter risks of default or delayed repayment.
Per the latest Faircent.com Research and Analytics Report, nearly 90% of its lenders earned gross returns in between 18% and 26% per annum, underlining the rise of online P2P lending as a highly lucrative alternative asset class for Indian investors.
