Faircent.com is providing a virtual market place, where borrowers and lenders can interact directly, without having to go through the traditional financial intermediaries like banks. Faircent connects borrowers who are looking for personal loans and business loan. Currently, they provide their services for Resident Indians
How it works
Faircent is a Marketplace where potential lenders and borrowers can register and then interact amongst themselves to strike deals on lending and borrowing. They provide a broad market place for interested individuals to pursue their bilateral transactions.
Once you registered, faircent.com will undertake a detailed verification process following KYC norms as laid down by the RBI/SEBI for opening bank accounts and online trading accounts. If you satisfy the verification process then you are registered with Faircent.com. REGISTER NOW.
How transactions take place
On the website, two groups of members register; lenders and borrowers. Borrowers post requirements for loans with reason, loan period and a target interest rate which they are willing to pay. Lenders make offers to borrowers, which the borrower can accept or refuse. Borrowers too can approach willing lenders with their loan proposals. .
Once an agreement is reached between the borrower and the lender, a formal contract is signed by them.The lender, then transfers the amount to the borrower’s account and the borrower makes periodic repayments via EMI , postdated cheques, NEFT, net banking etc. Repayment can be made and tracked via faircent.com.
Role of faircent
- Verifying each and every member, who is registered, either as a lender or borrower?
- Ensure that the information that we see on website about each member is authenticated as per proper guidelines set by the RBI/SEBI.
- Collect Personal, Professional and Financial details from each potential member. When a borrower and a lender come to a mutual agreement, Faircent help them legalize the transaction by signing a formal contract.
- Makes necessary provisions and help both parties realize the deal.
- Safeguards client confidentiality.
- Helps lenders with the collection and recovery of loans as per official guidelines of RBI for banks and financial institutions. Delay in repayment by borrowers draw a penalty which is pursued by Faircent as part of the process.
Transfer of Funds and EMI Payments
Transfer of money takes place through cheques. Lenders are directly issue cheques in the name of borrowers. And the Borrowers are to issues Post Dated Cheques (PDCs) directly in the name of lenders.
Eligibility criteria for buyer and lenders
Lender
- Should be a resident of India
- At least 25 years of age
- Have a minimum income of Rs 10 lacs per annum
- Have a valid bank account in India. Have a PAN card.
- Have a record of investing in fixed deposits, stock market or any other investment product through a trading or DEMAT account
- Not have interest income of over 30% of Gross Income. for more info just go faircent.com
Buyer
- Should be a resident of India (current facilities available only to residents of the National Capital territory of Delhi and Bangalore).
- Have a minimum gross income of INR 3 lacs per annum.for more info jus go faircent.com
Fee of faircent
They charge a listing fee of Rs. 1500 to invest up Rs. 150000 from both Lenders and buyer . This fee is due at the time of registration. After, for every lac of rupees invested the processing fee will be Rs.1000/-.
Benefits of online lending and borrowing
- It eliminates the high margins which banks and financial institutions make on transactions.
- One can interact directly with borrowers/lenders, negotiate terms and conditions about interest rates, tenure of loans, etc, and strike a deal on their own, without any intervention/imposition.
- You can repay your loan amount in one time without foreclosure cost.
To know more about faircent go through FAQ section .
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