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Faircent

Apply Faircent

Max Tenure

36 months

Best Rate

14% p.m

Processing Fee

4%

View Details

Features

  • Completely Digital
  • Quick loan processing
  • Less documentation

Pricing

  • Interest rate - 14% to 36%
  • Processing Fees - 4% to 8% of loan amount

Documents Required

    Documents Required - Salaried
  • PAN Card
  • Adhaar Card/ Voter ID
  • 1 Current Address Proof
  • E Bill If rented
  • Last 3 months Salary slips
  • Last 3 months (3 salary credits) salaried bank statement – Alternate statement if OD
  • Scanned copy of cancelled cheque of Salaried Account
  • Additional Documents for Self Employed
  • Last 6 months bank statement – Alternate statement if OD/CC (Both savings and Current Bank account statement required wherever Current A/c is available)
  • Business Registration proof
  • Business Address proof
  • Partnership Deed + Business Registration proof
  • If the registration is in the name if the partnership firm, PAN of partnership and ITR and computation will be mandatory
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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.

Faircent Personal Loans Snapshot

Loan Amount

Up to Rs.5 lakhs for personal use

Up to Rs.10 lakhs for business use

Interest Rate

12 – 28% per annum

Repayment Tenure

6 – 36 months

Platform Registration Fee 

Rs.500 (non-refundable)

Loan Processing Fee

6 – 8%

EMI Non-Payment Penal Interest

18% per annum for every instance

EMI Overdue Charges

Rs.500 for every missed payment

Pre-closure Charges

Rs.500 (but allowed only after 3 EMI payments)

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.

What Are The Eligibility Criteria To Get A Faircent Personal Loan?

  • You should be a resident Indian
  • Minimum gross income of Rs.2 lakhs per annum

Documents needed:

Photographs

2 copies

Identity Proof (any one of the following)

  • PAN Card
  • Aadhaar Card
  • Voter ID
  • Passport

Date of Birth Proof (any one of the following)

  • PAN Card
  • Passport

Signature Proof (any one of the following)

  • PAN Card
  • Signature verification from your bank
  • Passport

Address Proof (any one of the following)

  • Passport
  • Bank Statement 
  • Voter ID 
  • Electricity Bill (from last 3 months) 
  • Postpaid Telephone Bill 

Contact Proof (any one of the following)

  • Postpaid Mobile Bill (previous month)
  • Postpaid Landline Bill (previous month)

Bank Statements

Last 6 months

IFSC code

Scanned/canceled cheque or copy of the front page of pass book of same bank account

Proof of Income 

  • Last 3 months of Salary Slip (For Salaried Professional)
  • Last 2 years’ Business/Personal ITR & Take home salary (For Business Professional)

NACH Mandate 

For auto-debit of EMI amount

e-Mandate 

Once loan is approved

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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.

FAQS

1. What interest rate does Faircent charge?

Faircent charges between 12-28% interest rate on their personal loan.

2. Does Faircent check my credit to process my personal loan?

Yes, your credit check is an important parameter in determining your personal loan eligibility.

3. How long does it take to process my Faircent personal loan?

The Faircent team strives to list your loan on the platform within 48-72 hours since application submission. However, the loan will be disbursed only after it receives atleast 75% funding. This may take anywhere between 2-15 days. Once the loan has received adequate funding, the money will be credited to your account within 24 hours.

4. Does Faircent conduct physical verification of the documents before listing my loan?

Yes, physical verification is done both at your residence as well as business/work location before listing your loan.

5. Why does Faircent require 4 references contact to process my loan?

Since Faircent loans are entirely online, they require the contact information of at least 4 references, either from your professional or personal circle, to verify your identity, intent, willingness, and reliability to take out and repay the loan.

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