All about Lending
Can a lender take loan and lend at the same time?
No, you can either take a loan or lend at any given point of time.
Will a lender have to pay tax on returns?
Yes, we do not deduct any TDS on the returns accumulated by you. Hence you will have to pay taxes while filling for your returns.
What is the risk probability in P2P lending and how to mitigate risk?
Peer to Peer lending does not guarantee risk-free returns. However, we try to minimize risks by undertaking stringent verification and credit underwriting process. In case of any default, we do regular follow-up and soft recovery with the borrower. ...
What happens if any borrower fails to repay the EMI?
Peer to Peer Lending is unsecured lending and even after a stringent process, we do not guarantee risk-free returns or no defaults. However, we have a soft recovery and collection process in place to ensure minimal default. In case if the lender ...
Who are the borrowers?
You will be lending to individuals (salaried and self-employed). All individuals seeking loan will be termed as borrowers on the platform. All borrowers are listed only after a stringent credit underwriting process. Following parameters are taken ...
What are the returns and fee/charges for P2P lending?
You can lend to borrowers starting from 12% upto 36% as per your risk appetite and borrowers’ creditworthiness. Your returns will be equal to the interest rate of the borrower. The only fee applicable is the processing fee charged at 1.5% of the ...
How much money can I lend and for what tenure?
You can start lending as low as Rs 500 per borrower with loan tenure from 6 months to 36 months. However, the following has to be adhered to as per regulations: Exposure of a single lender to the same borrower, across all P2Ps, shall not exceed Rs ...
Why is cancelled cheque required?
A cancelled cheque is required as a part of KYC to verify your bank account for money movement. All pay-out will be made to the account details mentioned in cancelled cheque.
What documents are required to become an online personal loan lender?
You need to fulfill the following eligibility criteria to become a lender PAN card Aadhaar Card Cancelled cheque
Why do I need to transfer funds in Escrow account?
As per RBI regulations, all money movement has to be carried out through an escrow account. Transferring money to an escrow account is easy and safe, it also enables a faster and secure transaction.
How to lend on 5paisa P2P?
You can start lending in just four simple steps. They are as follows: Upload required documents Add money in the escrow account Register online and create your lender account Select borrowers from the list as per your risk appetite and start lending
Why to lend on 5paisa P2P?
5paisa P2P is RBI certified NBFC-P2P. 5paisa is one of the best P2P lending sites for investors and offers a completely online and paperless process for lending money to creditworthy borrowers. At 5paisa, you will get List of verified borrowers ...