When the history of Indian Startup revolution will be written, FinTech startups will grab the major part of it. 2015 saw a host of financial technology startups spread their wings wide. In the same year, in the month of October, i2ifunding, a fintech platform that facilitates P2P loan distribution began its operations. The Noida based startup was founded by Vaibhav Pandey and Neha Aggarwal. i2ifunding.com is an online market place for unsecured loans where a borrower posts his loan requirement and multiple investors fund the loan project.
Vaibhav is an MBA from IIM Ahmadabad and has 10+ years of experience in generating business, driving operational efficiencies, and improving quality. He has successfully designed and lead the development of various enterprise level solutions. Neha is an MBA from XIM-Bhubaneswar and graduated from Delhi University with distinction in Finance. She has worked from brand management in FMCG sector to product development in financial sector. She has handled SHG & FDOD instruments worth $25 million in the past. Apart from the two founders, the team has 18 more members. The startup has a strong leadership team which has a strong experience in managing complex operations and has developed deep understanding of unsecured loans.Most of the leadership team comprises of alumni of leading institutions such as IIMs.
While talking to us about their startup venture, Vaibhav says:
“Our vision is to make i2ifunding the most trusted P2P platform in India where borrowers can get personal loans at lower rates and investors can earn higher return on their investment. The personal loan can be used for multiple purposes which include purchase of consumer durable, debt consolidation (i.e. repayment of credit card debt etc.), medical expenses, education expenses, Marriage expenses etc.”
The complete process is transparent, quick and easy. Once the borrower is registered , the second step is to share all required documents for Credit Risk Evaluation. i2ifunding uses its proprietary credit risk model to evaluate risk. Based on the results of the risk evaluation, a benchmark interest rate is assigned to the borrower below which borrower cannot post his loan request. On the other hand the investors who are registered on the platform can through borrower profile and fund part of the loan request. The benefit for Investors is that they not only have an opportunity to earn higher returns but also diversify their risk by investing small amounts in multiple loan requests.
i2ifunding provides investors an opportunity to invest in loan requests of retail borrowers with interest rates as high as 25%. Its ease of use enables an investor to fund a loan project in a few simple steps. Users are also equipped with the ability to view and download detailed account statements, transaction analysis and many more features. The company puts a great effort into maintaining the privacy and confidentiality of the details shared with them. Their credit risk score model takes into consideration 30+ parameters to analyze each loan ensuring that each loan has been properly evaluated before being listed. And the cherry on the cake is their No Prepayment Penalty, the borrowers can simply prepay their loans at their own convenience without any charges whatsoever and as many times as they wish. They just need to contact i2i and choose one of the various options and proceed to prepay.Adding to the long list of features, Neha says:
“To mitigate biggest concerns of retail investors Investor protection fund has been created to provide guarantee on principal amount lent. Depending on the risk category of the loan, 75% to 100% of principal amount will be refunded by i2i to investors in case of any default. Investors need to pay an upfront fee which will be used to build this fund.”
Within last three months the company has been able to complete around 500 registrations. There is a huge market for P2P loans, keeping the same thing in mind, this startup is attracting investors by making sure that only high quality loans are posted at right interest rate after thorough risk assessment. Their focus is to continue to strengthen their analytics based risk assessment model so that it is more robust and analyzes all the data imprints created by borrower including behavioral analytics on social media in more detailed manner. They are also looking to expand their presence in at least 50 cities of India in next 3 years.