Peer to Peer lending with Monexo
Monexo is India’s leading peer-to-peer (P2P) lending marketplace – where people borrow and lend money to each other. Monexo provides an alternative financing model which is 100% online, simple and fast. Borrowers get personal loans at attractive interest rates and flexible terms. Lenders get to diversify their investment portfolio in a new asset class and earn superior returns. In a shared economy, Monexo is to finance like what Uber & Ola is to transport.
Vcare has partnered with Monexo for their P2P Lending Services.
Why Choose Us
Can I open more than one account for lending?
At Monexo Investment , you need just a single account to manage your portfolio. With this account you can fund several loans and have a dashboard view of your loan portfolio.
What is the eligibility criteria to become a lender?
To lend on the Monexo Investment marketplace, you must meet the following basic criteria.
As an individual :
– Age Minimum 18 years & Maximum 80 years
– Holding valid PAN card in India
– Having valid proof for an address in India
– Having valid bank account in India
– Having valid mobile number in India and E-mail ID
As a business/company :
– Institution should be a registered entity under Companies Act, 2013 in India
– Holding a valid PAN for the business entity
– Having valid proof for an address in India
– Having valid bank account in India
– Having valid mobile number in India and E-mail ID for an employee who is authorized to operate on Monexo Investment `s portal.
Note : These are the minimum requirements. All lenders are subject to Monexo Investment’s screening and approval process.
Is there a minimum amount I need to open a lender account?
At Monexo Investment, the initial amount required to be transferred to the Escrow account for lending is INR 1 lakh.
Peer to Peer lending, like other asset classes, works best with portfolio diversification. With an initial investment of INR 1 lakh, you can build a lending portfolio across 100+ loans which ensures investment risks are largely minimised – enabling you to enjoy high yields consistently. Smaller investments, result in concentration of portfolio across fewer loans and hence do not provide for sufficient levels of diversification. Hence, initial investments less than INR 1 lakh are NOT recommended.
Why do you ask for my documents?
While we are not regulated we believe in self regulation.
As a platform enabling financial transaction we believe in dealing with Individuals who are NOT in Government Blacklists for Terrorism, Drugs or any dealing with human trafficking etc. We are also supportive of Indian Government fight against money laundering activities. The documents submitted by you enable us to carry out these checks.
Finally, your documents are stored electronically with bank level security.
Who makes the decision to lend?
As an approved lender, you make
– the lending decision,
– decide on the amount to fund and
– manage your own money.
You can create a portfolio of loans based on your return expectation and risk taking capacity.
Who am I lending to?
Monexo Investment will be originating borrowers with following broad characteristics:
– living in India
– having regular identifiable income from Salary, Profession or Business
– loan amount required between ₹50,000 to ₹30,00,000.
We believe P2P lending is about ‘credit inclusion’ at fair terms of interest. You can read more about various products on our borrower here.
What does Monexo Investment verify prior to listing a loan in the marketplace?
Monexo Investment lists only those loans which have gone through its proprietary screening process. This screening process has been built by the founders
– based on their decades of Banking experience,
– current technology tools available to verify the authenticity of the borrower and
– financial information provided by the borrower.
What is a Monexo Investment Rating?
Every loan application received by VCARE Investment is screened and given a VCARE Investment Rating.
The ratings range from M1 to M8, with M1 being the best. The interest rate associated with the M1 to M8 band will vary based on VCARE Investment policy.
Once the loan listing is approved, the Monexo Investment Rating is displayed in the marketplace along with the loan listing details for you to view.
Do note that Monexo Investment Ratings are not a guarantee from Monexo Investment on the performance of the loans.
What are the risks involved and how are they addressed?
All investments involve risk, but we are 100% committed to providing outstanding products and customer service, and protecting the safety and security of your personal information. Risks are addressed through:
– Online security measures
– Third party, independent trust company holding the funds
– Diversification – by lending to many borrowers
Monexo Investment has also partnered with CRIF Highmark Bureau in India and built a proprietary credit scoring model based on decades of payment behaviour by millions of Indian consumers to financial institutions in the past. This scoring predicts the probability of repayment by the borrower.
What is diversification?
Diversification is an important feature in peer-to-peer lending. It gives you the ability to lend small amounts to different loans instead of funding one loan in entirety without the administrative hassle of managing these small loan amounts. By diversifying the amount that you lend to a number of borrowers, your risks are reduced.
On Monexo Investment marketplace you can lend as little as ₹ 1,000 per loan thus with ₹ 1,00,000 you can have 100 different borrowers in your portfolio with different risk profiles and tenor of repayment.
How do I build my loan portfolio?
Instead of funding an entire loan, you can participate by funding parts of loans.
You may choose to spread your money across several loans in order to create a diversified portfolio. Using sort & filter functions, you can balance the risks & returns and build a loan portfolio that suits your goals. You can choose a mix of different loan products, loan amounts, tenors, MonexoInvestment ratings and purpose of loan etc.
What is the maximum amount I can lend ?
As per RBI guidelines of Oct 4’2017
(https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11137)
The following limits are applicable to any person lending on P2P platforms:
– You can maximum lend Rs. 10 lakhs across all P2P lending platform.
– You can maximum fund Rs. 50,000 per loan.
By agreeing MonexoInvestment T&C’s you are agreeing to the above.