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Faircent expands presence in Tier-2 and Tier-3 cities in one year

Faircent.com, leading NBFC-P2P, said loan disbursements to borrowers from Tier-3 cities tripled during the past financial year.

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Last Updated: Dec 20, 2018, 04.39 PM IST
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Faircent.com, leading NBFC-P2P, said loan disbursements to borrowers from Tier-3 cities tripled during the past financial year. Also, the number of loan recipients from Tier-2 cities nearly doubled during the same period, the company said.

During the current financial year, 32 percent of loan disbursements on the platform were to borrowers from Tier-3 cities while 42 percent to borrowers from Tier-2 cities, said Faircent.

“Our efforts towards facilitating financial inclusion by building our presence in Tier-2 and Tier-3 cities, where a large chunk of India’s under-banked population resides, has truly paid off. Also, our latest research and analytics report shows that borrowers from these cities are making timely repayments,” said Vinay Mathews, Founder & COO, Faircent.com.

P2P companies in India are trying to bridge the credit gap between borrowers who might not be able to produce the required set of financial records to avail bank loan, but who are capable of repaying their loan and banks.

Banks and NBFCs use traditional methods to evaluate creditworthiness of borrowers, making unsecured personal loans almost impossible to most small businesses and individuals in the rural and semi-urban areas.

Online P2P platforms are trying to fill the gap. “There are 135 parameters to select a borrower on Faircent which are divided into four categories. We even consider people with a credit score of 600 [provided they have supporting documents],” adds Mathews.

Faircent became the first NBFC P2P to reduce personal loan rates to 9.99 percent for prime borrowers in September this year. Applicants with CIBIL score of 750 and good banking record were only eligible for the lowest interest rate.

Read here: Why lowering interest rates on personal loans to 9.99% made economic sense.

Faircent has expanded its presence to 450 plus cities across India and plans to double this number by next year. There are currently 5.5 lakh registered borrowers and 87,000 registered lenders on the online P2P lending platform, which has disbursed more than Rs 55 crore worth of loans so far.

Click here for all the information and analysis you need for tax-saving this financial year

Also Read

Faircent launches book on P2P lending ‘Every Percent Counts’

NBFC-P2P Association appoints Faircent’s Rajat Gandhi as its new President

Faircent ties up with Cube Wealth

Faircent raises fresh funding from investors led by Das Capital & Gunosy Capital

Faircent says 64% of all loans disbursed in 2018 were to SMEs

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