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.
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.
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.
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.
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.
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.
No, repayment dates are fixed based on actual dates of disbursal.
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.
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.
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.
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.
Repayments are equated monthly installments (EMIs) calculated using the reducing balance method.
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.
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.
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.
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.
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.
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.
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.
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.
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.
An individual lender on billionloans has to:
Lenders will be required to provide billionloans with following documentation as part of their registration:
Date Of Birth Proof
Date of Birth Proof
Signature verification from your bank
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 begins only after:
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.