P2P Lending seeks to build an efficient financial ecosystem by allowing individuals/entities to lend directly to one another through a one – stop - shop solution. In such a construct, individuals enjoy greater autonomy over their money, higher returns by eliminating costs of intermediation and enhanced transparency in terms of their actual use of funds. P2P seeks to formalise the existing informal network of money-lending, micro-credit, and social support groups through which one - to - one lending is currently done.
LiquiLoans as a platform seeks to connect investors with creditworthy borrowers and earn inflation – beating returns without taking unnecessarily high risk.
All borrower loans are put through stringent credit and quality checks before being made available on the platform to ensure investors are exposed to a high- quality basket of borrowers. Borrowers may be sourced via multiple channels including vendor partners.
LiquiLoans focuses heavily on Consumer Lending, increasing safety by encouraging investors to diversify their investments across multiple borrowers in segments such as upskilling education, discretionary healthcare etc.
All borrowers are mandatorily required to enter into an agreement, which captures the terms and conditions of the loan, repayment period, rate of interest etc.
Investors invest funds through an investor dashboard, which allows them to monitor their investments and keep track of their borrower portfolio. To reduce the time involved in selecting/curating borrower portfolios, investors are free to define their lending criteria, such that only borrowers meeting the criteria set by the lender will be allocated to them via LiquiLoans’ proprietary algorithm.
In line with RBI master directions, all transactions on the platform flow via an escrow account, monitored by a bank - sponsored trustee. The funds brought into the escrow account are subsequently disbursed to the borrowers.
The platform earns fee - based income from investors.