Faircent Personal Loan

How to Get a Personal Loan in Faircent

Faircent is a peer-to-peer lending platform that empowers personal loan borrowers by putting them on an equal footing with lenders. It links potential borrowers with lenders who are interested in lending to them and acts as a digital platform for the loan transaction.

Faircent is an open and transparent lending platform that allows borrowers to borrow directly from individuals and institutional lenders, eliminating intermediary fees and margins, resulting in cheaper interest rates and better loan terms for borrowers.

How Does Faircent Personal Loans Work?

Faircent follows a simple 8-step process for loan approval: 

Registration -> Profile Evaluation -> Listing On Platform -> Funding -> Sign Agreement With Lender -> Disbursement -> EMI Repayment -> Loan Closure

1. Registration And Loan Listing

The registration procedure is comparable to that of any other online platform. You must fill up a few basic details, pay a registration cost of Rs.500, and upload the required documentation.

Following that, your loan application will be validated, and your eligibility will be established based on your identity, credit check, and risk assessment. Your credibility and repaying capacity will be determined by an in-house automated system. As a result, the final interest rate given to you will be determined.

Faircent features a unique 'Unrated Borrowers Category' that allows borrowers with minimal credit histories to apply for these loans. However, the interest rate is much higher here.

2. Loan Funding

Once a loan is posted, it can be viewed by several lenders who can submit proposals to fund it at the specified interest rate. To protect the lender's interests, Faircent has employed a system in which a lender can fund only up to 10% of a loan obligation. As a result, each loan will be funded by at least ten different lenders. Loan applications are processed one by one in the order in which they were received.

3. Loan Disbursal

The loan disbursement will begin once the financing has garnered enough investors. The following processes must be complete before the loan amount can be disbursed:

• A minimum of 75% of the loan amount has been funded
• Lender and Borrower have signed an official loan agreement
• The requisite number of Post-Dated Cheques has been submitted by the borrower
• All the required checks have been completed by Faircent
• The applicable one-time administrative fees have been deducted from the loan amount

4. Loan Agreement

Faircent makes it easy for the Borrower and the Lenders to sign a legally valid agreement online. On the borrower's and lender's Faircent accounts, the agreement is visible online. They log in to their accounts, read and understand the terms and conditions, "digitally sign" the agreement by clicking the acceptance box, and the process is complete. The contract is then emailed to both the borrowers and lenders for their records. Although the process is legally enforceable in the same way that a physical agreement is, it is speedier and more efficient, assuring a faster transfer of funds from the lender to the borrower.

5. Post-Dated Cheques 

Borrower must also furnish post-dated checks as security in addition to the agreement. The NACH mandate is used to transfer cash electronically between lenders and borrowers.

The loan amount is transferred electronically from the Lender's escrow account to the Borrower's bank account after the agreements are signed and PDCs are received.

Who Are The Lenders Or Investors For My Faircent Personal Loan?

Faircent enables interested lenders to register themselves to lend on this platform. Faircent lenders are either high-net-worth individuals (HNIs) who are successful in their fields or institutional lenders such as NBFCs. Faircent ensures that only the most trustworthy lenders connect with borrowers; as a result, any potential lender is only registered after providing assurances about the accuracy of their credentials, income figures, and other information.

Is There Any Restriction On How I Use My Faircent Personal Loan Amount?

Faircent personal loans can be availed to meet any of your personal needs. Some of the most common reasons that borrowers have used Faircent to get a personal loan are:

• To pursue a professional course to help your job
• To provide for a child's education 
• For weddings and family functions 
• To refinance Credit Card dues 
• For down payments for cars, bikes, and other vehicles 
• For home purchase, renovations, and refurbishment 
• To consolidate ongoing loans 
• For any medical emergencies

These are only some of the reasons to avail a Faircent personal loan; as life can present a variety of exigencies that may necessitate unexpected financial needs, Faircent doesn’t set any restrictions on how you utilize the personal loan amount.

How Does Faircent Determine My Loan Eligibility And The Interest Rate?

Based on the borrower's personal and financial information and documentation, Faircent employs a highly developed, technology-driven verification procedure that covers more than 120 criteria and utilizes more than 400 data points. Our skilled team verifies each borrower's identification, checks their credit, and assesses their risk. Your loan application intention, credibility, and repayment capacity are assessed and comprehended using this in-house mechanism.

Faircent personal loans are a great option for someone with low credit score or very less credit history. It connects you directly with potential lenders removing intermediaries, thus offering you lower rate of interests. However, the maximum loan amount one can avail is only Rs.5 lakhs which may not be suitable for individuals looking for higher loan amounts.

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