Frequently Asked Questions


  1. Who can lend on billionloans?
  2. How am I helping others achieve financial success? How will this benefit me?
  3. How do I become a lender on billionloans?
  4. How much money can I lend, and for what period?
  5. Are there any other fees or hidden charges?
  6. Why does billionloans need to verify my details?
  7. Can I choose the date to get my repayments?
  8. What kind of returns can I expect?
  9. How can I control the risk in my investments?
  10. What is the maximum amount I can invest in one borrower?
  11. How safe is my money?
  12. How are repayments calculated?
  13. Do I have to put money upfront into my billionloans account?
  14. When does the money go out of my bank account?
  15. What are the risks related to lending? How are the risks managed?
  16. What happens in case of delayed or non-payment by Borrowers?
  17. Will I know my Borrowers?
  18. Is my interest income through billionloans taxable?
  19. How long does it take to find Borrowers?
  20. Can a non-individual lend through billionloans? Can I invest through my company?
  21. When will the repayments get credited to my account?
  22. What are the eligibility criteria to lend on billionloans?
  23. Is the information provided by me to billionloans secure?
  24. What are the typical documents required as part of the lender registration process?
  25. What is the process followed for loan approval and disbursal?
  26. Code of Conduct for Lenders
1. Who can lend on billionloans?

Any Indian resident, at least 21 years of age at the time of registration, with a valid bank account and PAN card can lend on billionloans. However, not more than 30% of your gross income should be derived from lending to individual borrowers. NBFCs registered with the RBI and entities registered under the Indian Companies Act as well as any other legal entity allowed to lend as per regulations in force are also eligible to become lenders on billionloans.

2. How am I helping others achieve financial success? How will this benefit me?

billionloans provides a unique opportunity to help borrowers get loans at a better rate of interest and in the process help Lenders earn a higher interest rate than what they would if they kept their money idle. The process is mutually beneficial and is a win-win situation for both parties. However, please read the Terms and Conditions to understand the risks involved. If you are new to lending, please remember that there are both benefits and risks in lending and lenders must use their own judgment to decide on which borrowers to lend to.

3. How do I become a lender on billionloans?

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 become a verified lender and will have access to our database of verified borrowers so that you can choose the borrowers that you wish to fund.

4. How much money can I lend, and for what period?

You can start investing with Rs 5,00,0000/- (Rs 5 lakhs) onwards. Borrowers are registered with BillionLoans typically for loan tenures ranging from 6 months to 36 months for different purposes and at different interest rates.. You can choose Borrower(s) to whom you wish to lend according to loan purpose, tenor and interest rates as per your wish.

5. Are there any other fees or hidden charges?

No, there are no hidden charges. billionloans has a simple, transparent fee structure. We charge the borrower a fee of 3% of the loan amount sanctioned. Apart from this, there are no other charges.

6. Why does billionloans need to verify my details?

billionloans conducts a verification process of the data and documents provided by Lenders to comply with KYC and anti-money laundering regulations prescribed by the RBI and with any other rules prescribed by government agencies from time to time.

7. Can I choose the date to get my repayments?

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

8. What kind of returns can I expect?

Returns depend on the credentials of borrowers, loan purpose and tenure as listed in the Billionloans Marketplace. We use a proprietary credit assessment methodology that assigns an interest rate depending on the credit worthiness of the borrower and transaction risk. Further, interest rates are also a factor of prevailing interest rates in the economy. We manage the risk taken by Lenders by presenting loans which give a typical return of between 11% and 16%. Please note that higher interest corresponds to greater risk. Further, under no circumstances can we guarantee a specific return on your investment.

9. How can I control the risk in my investments?

You can manage your risks by diversifying your portfolio. This means that you must try to spread out your loans across different types of borrowers at different interest rates. Further, you can spread out your investments across loan purpose and tenor e.g. some loans of 24 months and others of 6 -12 months.

10. What is the maximum amount I can invest in one borrower?

For less experienced borrowers on our platform (i.e. with less than Rs 25 lakhs invested), we restrict their funding for each loan at 10% of a borrower’s requirements or 10% of the Lender's aggregate investment, whichever is lower. More experienced Lenders (i.e. with Rs 25 lakhs or more invested through our platform), we allow lending up to 100% of a borrower’s requirement.

11. How safe is my money?

All borrowers that are listed on the billionloans Marketplace go through a rigorous borrower selection and credit assessment process to arrive at an application credit score. A high application credit score corresponds to low risk and a low application credit score corresponds to higher risk. However, no lending is without risk and a high application credit score does not rule out the risk of default. All lending on our website is unsecured and while we will provide a soft recovery and collection process (within the regulations prescribed by the RBI) this does not ensure guaranteed returns or zero defaults. Your money is not insured and lending is not risk-free. Defaults can and do happen. Please read and understand Terms and Conditions before investing.

12. How are repayments calculated?

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

13. Do I have to put money upfront into my billionloans account?

No. While you will need to the commit the amounts you wish to lend to individual borrowers, through billionloans, you won’t be required to immediately transfer this amount to any billionloans bank account.

14. When does the money go out of my bank account?

Once the loan application is fully funded and loan documentation is signed by the borrower we will request you to transfer the loan amount to an escrow account from which the borrower’s account will be funded. Further, in the future, we plan to use payments methods that will be more convenient for you (like the Unified Payment Interface) as and when they get launched by the government. We will communicate any such changes well in advance of introducing them.

15. What are the risks related to lending? How are the risks managed?

As with any lending, there are some risks; the biggest being that a borrower doesn’t repay the loan. At billionloans we try to keep this risk to a minimum by ensuring that every borrower registered with us is KYC verified and risk-assessed by our experienced team using our proprietary methodology. We attempt to screen out borrowers with unacceptably low levels of credit worthiness. Loans are disbursed after borrowers sign loan agreements in which they acknowledge their debt and accept the liability to repay the loan. In case of default we use collections agencies that operate within the parameters laid down by the RBI to follow-up and collect missed payments on your behalf. Though we do our best to manage the risk at every step, defaults can happen. We encourage you to spread your investment across a number of borrowers to reduce risk.

16. What happens in case of delayed or non-payment by Borrowers?

In case the EMI is not paid by the due date, penal interest of 24% p.a on the amount due for the time period lapsed after the due date will be applicable. Borrowers will be liable to pay the penal interest to their ender(s). In case of default we use collections agencies that operate within the parameters laid down by the RBI to follow-up and collect missed payments on your behalf. The expenses incurred by the collection agencies will be borne by the Lender.

17. Will I know my Borrowers?

Once a Borrower listing on the Marketplace has been approved by billionloans, the Borrower’s profile can be viewed by all registered Lenders. The profile includes financial information; KYC details and other information required to make a lending decision but will not include information that violates our privacy norms or any other laws and regulations that protect the rights of Borrowers. For further information, please view billionloans Policy and Terms and Conditions.

18. Is my interest income through billionloans taxable?

All repayments you receive from Borrowers on billionloans will be without any tax deduction. We will provide an annual income statement to you that you can download from your dashboard after logging in to your account. Your earnings will be taxable as per the income tax rules that apply to you. Paying the applicable tax on income earned is your responsibility and billionloans is not liable for any default on the same.

19. How long does it take to find Borrowers?

You can find active borrowers on the billionloans platform at all times. Credit-worthy borrowers at low interest rates gets funded immediately and borrowers listed at high interest rates sometimes take a few days. billionloans is a marketplace and the time taken for finding a borrower matching your loan amount and desired rate of interest is dependent on the actual list of borrowers listed on the Marketplace at any point of time.

20. Can a non-individual lend through billionloans? Can I invest through my company?

NBFCs registered with the RBI and entities registered under the Indian Companies Act as well as any other legal entity allowed to lend as per regulations in force are also eligible to become lenders on billionloans.

21. When will the repayments get credited to my account?

At the time of loan disbursal, you will be informed about the repayment schedule for that loan. A week before a repayment is scheduled; we will send a reminder to the borrower to make the repayment. Once the repayment is received from the borrower, we will endeavor to get it transferred to your account as soon as possible. Since we use existing RBI-approved payment channels, repayment times are bound by the time windows allowed by the channels, for instance, repayments will not take place on bank holidays and Sundays.

22. What are the eligibility criteria to lend on billionloans?

An individual lender 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 lender on billionloans has to:
  1. Be an entity registered under the relevant government agency or act of law e.g. registered with the RBI for NBFCs, under the Indian Companies Act for corporates, under the LLP Act for LLPs, under the Shops and Establishments Act for retailers etc.
  2. Should be permitted by existing government regulations and internal rules to lend.
  3. billionloans strongly recommends that Lenders that are not financial institutions should invest from their surplus income and not borrow to lend.

23. Is the information provided by me to billionloans secure?

We at billionloans are committed to client confidentiality and the security of all information provided to us. We use this confidential information strictly for official purposes. We encourage you to read our Terms and Conditions and  Privacy Policy carefully.

24. What are the typical documents required as part of the lender registration process?

Lenders will be required to provide billionloans with following documentation as part of their registration:

1

Photographs

2 copies

2

Date Of Birth Proof
(any one of the following)

PAN Card

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

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

The registration process is quick and easy. A lender has to register by providing basic contact and identity information. We conduct a KYC verification process including a physical verification of address and collect KYC documentation. Once the verification process is completed, the lender is notified and can begin lending immediately.
Similarly, Borrowers enter identity details, financial and income information and loan details and upload 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.
On 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.

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 have been signed.

The Agreement

billionloans facilitates the signing of a loan 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 loan 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 we inform the Lender and the Lender can transfer the loan amount.

26. Code of Conduct for Lenders
  1. You will read the billionloans Policy and Terms and Conditions fully and understand it completely before registering.
  2. Unless you are a RBI-registered NBFC, you will not borrow money to lend, either from the billionloans platform or elsewhere.
  3. You will honor your commitments and not renege on your funding commitments after confirming it through our website.
  4. You will not harass borrowers during the course of or after the completion of the loan disbursal process. This would include, but is not limited to, not communicating directly for loan recovery, not pestering Borrowers for additional details in attempt to personally verify borrower’s credentials etc.
  5. You will not resort to unlawful means to recover loans in case of default. billionloans has a recovery mechanism that complies with existing laws applicable today and will continue to comply with any changes to laws that may be introduced in the future. However, billionloans is just the facilitator and not an intermediary or holder of the funds, and hence is not responsible for the amounts recovered in the process.
  6. You are responsible for all and any decision that you have taken to lend through billionloans and billionloans does not take any responsibility for the outcomes, including but not limited to default.
  7. You will adhere to all laws relating to income tax and pay your taxes on the income generated by lending through billionloans.