Frequently Asked Questions


  1. Why borrow through billionloans?
  2. How does billionloans work?
  3. How do I get started?
  4. Why do you require so many documents?
  5. How much can I borrow?
  6. What is the tenure of loans on billionloans?
  7. Will I be funded by an individual lender or by multiple lenders?
  8. Can I speak/message to any of the lenders to fund me?
  9. Can I pre-pay my EMI? Can I repay my loan early if I like? Are there any charges?
  10. Can I choose my monthly repayment date?
  11. What rates can I expect to pay?
  12. On what parameters does billionloans verify my profile and check my credit-worthiness?
  13. Does billionloans.com undertake physical verification?
  14. Does billionloans require references?
  15. How much time does it generally take before a loan is listed?
  16. How much time does it take to find a lender? How long can my loan request be available for lenders to bid?
  17. How long is the disbursal process?
  18. Why was my application declined?
  19. Are loans secured? What collateral do loans require?
  20. What happens in case of delayed or non-payment of EMI?
  21. How are repayments calculated?
  22. What information can be viewed about me?
  23. Are there any hidden charges?
  24. Can I change the loan amount I want to borrow after applying?
  25. How do I cancel my loan application?
  26. How do I change my bank details?
  27. Can I be both, a Lender and a Borrower?
  28. Why is billionloans asking me permission to access my bank account details?
  29. What are the eligibility criteria for borrowers?
  30. What are the typical documents required as part of the loan application process?
  31. From Whom Am I Borrowing?
  32. What is the process followed for loan approval and disbursal?
  33. What are the options for loan repayment?
  34. For what purposes are loans available?
1.Why borrow through billionloans?

billionloans is a Peer – to – Peer money lending platform that is completely online. By enabling a wide pool of borrowers and lenders to directly transact with one another, we aim to increase competition and reduce transaction costs resulting in lower interest rates for borrowers. MicroGraam ensures that there is complete transparency in the lending and borrowing processes.

2. How does billionloans work?

At billionloans, borrowers can register themselves on our website and get verified and assessed through our e-KYC and credit appraisal processes. Similarly, we verify lenders (using e-KYC) before they register with us. Lenders can use our website and search through our database of verified borrowers and choose to lend directly to the borrowers of their choice. billionloans will assists the borrowers and lenders in executing the required loan documentation and enabling (using approved payment mechanisms) fund transfers directly between the bank accounts of the borrower and lender.

3. How do I get started?

Sign up through the simple step by step process as instructed. Once you have filled the basic information required and we have completed the e-KYC process, you will be asked for more detailed information that will allow us to better match your requirements with available lenders. We will also ask you to upload some documents to support the details provided by you. The billionloans risk assessment team will then review your details and decide whether your profile can be included in our borrower database. Once your profile is approved in the risk review process, it will be listed on the borrower database of our marketplace and you will become eligible for lenders to fund you.

4. Why do you require so many documents?

The documents are required to verify your identity and asses your credit-worthiness before registration. Apart from the CIBIL score, we use various other parameters like ability to pay, income stability, past performance and intention of the borrowers, which are evaluated on the basis of these documents.

5. How much can I borrow?

At billionloans, loan disbursal is dependent on the type of loan requirement as well as other parameters like income and credit strength. The maximum loan amount permitted is Rs 5,00,000/-. Please note that the final amount you may be eligible for could be lower than the maximum allowed and will be decided based on MicroGraam’s credit assessment of your profile.

6. What is the tenure of loans on billionloans?

Currently, you can borrow for up to 24 months. billionloans is working on making it operationally feasible to let Borrowers borrow for longer periods. Please note that the loan tenure that you may be eligible for could be lower than the maximum allowed and that it will be decided based on MicroGraam’s credit assessment of your profile.

7. Will I be funded by an individual lender or by multiple lenders?

You could either be funded by a single lender or by multiple lenders depending on choices made by lenders on our website. You can visit your dashboard (after you log in) that will detail out the lender(s) who have funded you.

8. Can I speak/message to any of the lenders to fund me?

No, billionloans will facilitate the meeting with lender only on request.

9. Can I pre-pay my EMI? Can I repay my loan early if I like? Are there any charges?

There is no a pre-payment charge or penalty for pre-paying EMI. Pre-closure of loan can be done after three months from the disbursal of the loan without any additional charges. Prior to three months, in order to protect lender interest, pre-closure can be done after paying balance interest due to lenders for a period of three months from the date of disbursal. This is payable directly to Lenders. billionloans does not charge any pre-payment fees.

10. Can I choose my monthly repayment date?

No, repayment dates are fixed based on actual dates of disbursal.

11. What rates can I expect to pay?

Interest rates are assigned to each borrower using our proprietary credit assessment methodology that uses the personal and financial information provided by borrowers across multiple criteria to risk-asses the borrowers and understand the strength of their credit profile.

12. On what parameters does billionloans verify my profile and check my credit-worthiness?

We use a highly-developed, technology-driven process of verification across various criteria based on the personal and financial information and documents provided by the borrower. Each borrower’s identity is verified against government databases and credit risk assessed using a methodology designed by our experienced team. The ability to repay, income stability and intention of borrowers is evaluated.

13. Does billionloans.com undertake physical verification?

Yes, Physical verification at both residential and official address is undertaken after prior appointment. This is undertaken to verify the identity of the Borrower.

14. Does billionloans require references?

Yes, as part of the verification process, we require 2 references from your professional or personal contacts who should be able to verify your identity, intention and stability to take and repay a loan.

15. How much time does it generally take before a loan is listed?

Once a borrower registers provides basic information and uploads the required documents, we will take between 1 to 48 hours to evaluate the maximum permissible loan amount, loan tenure and the interest rate to be charged. After the borrower accepts these loan parameters, the loan will get listed on our Marketplace.

16. How much time does it take to find a lender? How long can my loan request be available for lenders to bid?

We will list loans on our Marketplace for 45 days. However, the funding of any loan cannot be predicted as it depends upon attracting investors who are interested in the loan. Depending on your credit worthiness and the terms of the loan, it can take a few hours to a few weeks.

17. How long is the disbursal process?

The disbursal process starts only after the borrower has completed the loan documentation. Lenders generally transfer funds to the borrower within 1-2 days. We follow up with the lender to ensure that disbursal is completed as soon as possible.

18. Why was my application declined?

billionloans can decline to list a borrower’s application on its Marketplace if the borrower and/or application does not meet its internal credit worthiness criteria. This decision is based on the evaluation of multiple criteria and is not linked to any one parameter. In addition, the borrower’s application will be declined if KYC cannot be verified, documentation is incomplete or cannot be authenticated, physical verification of the borrower’s address is negative or if the borrower is found to have provided incorrect, incomplete or misleading information with the intent to cheat billionloans, its employees, directors, its customers, users of its platform or any other entity associated with it.

19. Are loans secured? What collateral do loans require?

Currently, billionloans provides loans that are unsecured obligations and do not require collateral.

20. What happens in case of delayed or non-payment of EMI?

In case a borrower does not pay the EMI by the due date, penal interest of 24% p.a. will be applied to the amount due for the duration of delay. Additionally, collection charges of Rs. 1000/- will be charged by billionloans. billionloans will support our lenders in exploring all available legal methods for recovery of their funds including the initiation of legal proceeding where required.

21. How are repayments calculated?

Repayments are equated monthly installments calculated using the reducing balance method.

22. What information can be viewed about me?

Once your listing has been approved by billionloans, your profile can be viewed by all registered Lenders. This includes full name, profession, purpose of loan, email ID and financial information. We will not make this information available to general visitors to the website. For more information, please view our Privacy Policy.

23. Are there any hidden charges?

No, there are no hidden charges. billionloans has a simple, transparent fee structure. We charge the borrower a fee of 2% of the loan amount sanctioned Apart from this, there are no other charges as long as your repayments remain regular. In case of default, a penal interest is charged over and above your agreed rate and collection charges of Rs 1000/- are charged by billionloans.

24. Can I change the loan amount I want to borrow after applying?

No, you cannot make changes to details of a loan once you have applied. Any changes, including a reduction in loan amount, that are required to comply with billionloans’s policies will be communicated to you and made by us after your agreement.

25. How do I cancel my loan application?

Please write to support@smallbiz.microgram.com requesting cancellation of your registration as Borrower. Loan cancellation can only happen prior to disbursal of funds.

26. How do I change my bank details?

Please write to support@smallbiz.microgram.com  stating both your old and new bank details and we will inform you of the documents required to make the change.

27. Can I be both, a Lender and a Borrower?

No. At any point of time, you can be either a Lender or a Borrower.

28. Why is billionloans asking me permission to access my bank account details?

billionloans verifies the financial documents submitted by the borrower(s) which takes a lot of time and can delay the listing of a loan request. Accordingly, where available, we use automatic feeds from financial institutions to speed up the verification and assessment process to help fund loan application faster.

29. What are the eligibility criteria for borrowers?

An individual borrower on billionloans has to:

  1. Be a resident of India.
  2. Be at least 21 years of age on the date of application
A Non-individual borrower on billionloans has to:
  1. Be an entity registered under the relevant government agency or act of law e.g. under the Indian Companies Act for corporates, under the LLP Act for LLPs, under the Shops and Establishments Act for retailers etc.
  2. Been in business for at least 2 years.
Should be permitted by existing government regulations and internal rules to borrow.

30. What are the typical documents required as part of the loan application process?

Borrowers will typically be required to provide billionloans with following documentation before loan disbursal (apart from the loan documentation that will need to be signed).

1

Photographs

2 copies

2

Identity Proof
(any one of the following)

PAN Card

Aadhaar Card

Voter ID

Passport

3

Date of Birth Proof
(any one of the following)

PAN Card

Passport

4

Signature Proof
(any one of the following)

PAN Card

Signature verification from your bank

Passport

5

Address Proof
(any one of the following)

Passport

Bank Statement

 

Voter ID

 

Electricity Bill (within last 3 months)

 

Post paid Telephone Bill

6

Contact Proof
(any one of the following)

Post paid Mobile Bill (last month)

Post paid Landline Bill (last month)

7

Bank Statements

Last 6 months

8

Proof of Income

Last 3 months of Salary Slip (For Salaried Professional)

Last year’s Business/Personal ITR and Take home salary (For Business Professional)

9

Post Dated Cheque

As security to cover the entire principle and interest amount payable over the life of the loan

Information provided by you will be used strictly for official purposes, and billionloans safeguards client confidentiality. For further information, please read the  billionloans Policy and Terms and Conditions

31. From Whom Am I Borrowing?

At billionloans loans can be taken from multiple lenders who use the platform to reach out to borrowers and provide them with loans at an economical rate of interest and in the process earn a higher interest rate than what they would if they kept their money idle. This process is mutually beneficial and is a win-win situation for both parties.
The lenders on billionloans.com are wealthy individuals, family trust offices, financial institutions or any other entity that is legally allowed to make loans in India. billionloans ensures that only verified lenders use our website by authenticating their identity prior to allowing them to register.

32. What is the process followed for loan approval and disbursal?

The registration process is quick and easy. A Borrower enters identity details, financial and income information and loan details and uploads the documents required.
Based on these details, every borrower is KYC checked followed by a credit worthiness analysis. Our credit assessment process determines the maximum loan amount, loan tenure and interest rate for which the borrower is eligible. After this, the borrower’s loan application will be listed on the billionloans Marketplace. Any reductions made to the borrower’s loan amount will be confirmed with the borrower before listing.
Lenders registered on the website will be able to access the loan application and make decisions on funding all or part of the loan. The borrower can track the funding status of the loan i.e what percentage of the amount required has been committed by lenders.

Loan Disbursal

Loan disbursal begins only after:

  1. 100% funding of the loan amount has been achieved.
  2. Loan agreement(s) and other loan documentation has been signed.

The Agreement

billionloans facilitates the signing of a legally-binding agreement between the Borrower and the Lender(s).
The borrower physically signs the hard copy of the agreement. Our representative meets the borrower, gets the legal agreement signed and collects other documents that may be required e.g. pro-forma invoice of the item to be purchased with the loan. Once the documents are verified, the lender can transfer the loan amount to the borrower.

33. What are the options for loan repayment?

Borrowers can repay through multiple electronic means available on our website like debit card and net banking as well as through NEFT. Further, the option of auto debit from bank accounts is also available. As a part of loan documentation, the borrower will also have to provide 1 post-dated cheque as security against default covering the entire principle and interest payable over the term of the loan.
Please note that billionloans does not deal in cash.

34. For what purposes are loans available?

At billionloans, we encourage loans for productive purposes like improving livelihood prospects, improving living conditions, reducing cost of existing debt and running and expanding small businesses. Loans for consumption are also available but we encourage our borrowers to be responsible and aware of their own repayment capabilities and avoid over burdening themselves with debt. Loan requests can be made for many purposes like:

  • Individuals:
  • Education
  • Own Marriage
  • Sibling's or Child’s Marriage
  • House Repair
  • Purchase of Durables
  • Medical Expenses
  • Vehicle Purchase
  • Holiday
  • Non-individuals:
  • Working Capital Finance
  • Capex
  • Repayment of Existing Debt-Working Capital
  • Repayment of Existing Debt-Capex

The list is not exhaustive and loans are available for other purposes for which borrowers may have a need.