Faircent.com is an online platform for peer-to-peer lending. It provides a virtual marketplace where borrowers get their requirements funded at viable rates and lenders get the best possible return on their investment. This P2P format does away with traditional financial intermediaries like banks that often dictate terms and conditions for borrowers and lenders. By eliminating the high margins that banks and financial institutions make on transactions, borrowers and lenders can negotiate terms and conditions about interest rates, tenure of loans and deals on their own without any intervention.
The biggest challenge Faircent faced was that the ecosystem at the time of their inception was not conducive for P2P finance. Individual credit histories were not easily available and the system for payments in 2013 was not electronic. Instead of getting bogged down, the founders spent close to a year perfecting the product and launched the company in 2014 when they felt the time was right.
Faircent has a number of features that make it easy to use. Their Auto-Invest feature is a fully-automated feature that matches lender investment criteria with borrower requirement. It is the first P2P lending site in India to have successfully launched collateral-backed loans. The company is now working on loans against property, gold and other products. All these features will go a long way towards helping democratising financial services in India. The company’s goal is to help realise the government’s vision of financial inclusion by making credit accessible to everyone in need. Since its inception, Faircent has disbursed loans of more than thirteen crores and aims to reach over four hundred crores in the next few years.