- lock_openI am an individual Lender. What are the next steps ?
Kindly register at the site as a lender. Based on your profile, we will suggest you suitable verified borrowers. Once the loan terms are finalized, you would need to send money to the borrower. In return, the borrower would provide you post-dated checks to you.
- lock_openCan I lend at LoanMeet?
All Banks, NBFCs, and financial institutions can lend via LoanMeet. Also, all Indian nationals with a bank account can lend to individual borrowers.
- lock_openI am living outside of Bangalore. Can I still lend?
Yes, you can.
- lock_openDoes LoanMeet guarantee the principal or interest payment ?
NO. As of today, we do not guarantee the principal or interest payment. We are working with partners who can help us in this regard.
- lock_openI am a salaried individual, and I am skeptical about lending at LoanMeet. Please tell me more.
We understand. Why would someone lend to an individual whom he does not know? At LoanMeet, we have excellent track record all loans are performing well. Unlike other platforms, not a single loan originated from LoanMeet has gone bad; all loan payments were made on-time. Let us know if you want to talk to a fellow lender, we can arrange a call between you and an experienced lender.
- lock_openWhat if the borrower defaults on the loan, or does not pay the loan amount ?
We understand your concern. Before we give the loan amount, we try our best to ensure that this does not happen. However, despite our best efforts, it can happen. We will reach out to an outside collection agency, and ask it to collect the remaining principal, interest, and penalty from the borrower. We will also help the lender file a legal case against the borrower. Please understand that we, LoanMeet, have not guaranteed the principal or interest amount. Before giving a loan to an individual, we take post-dated cheques from the borrower. We follow a similar procedure that most financial institutions do to recover the loan amount. We have a six-step process to recover the loan amount. We have partnered with leading recovery agencies to get you your money.
- lock_openHow much money can I lend?
For individuals, you can invest starting from Rs. 10,000. For each loan request, we encourage investors to diversify their investments, and not invest not more than 33% in a loan request.
- lock_openHow safe is my money?
The funds are transferred directly from your bank account to borrowers account during lending, and vice versa for EMI payments. The entire process is similar to NEFT transactions where you transfer funds from your bank account to your friends account.
- lock_openWhy does LoanMeet need to verify my details?
The loan agreement between borrowers and lenders is a legal agreement on a stamp paper; it contains PAN number of lender as well. We want to make sure that lenders are legitimate, and using their own bank account funds to lend money.
- lock_openHow are repayments calculated?
Your payments depend on the loan amount, tenure of loan, and interest rates. Your installment per month will remain the same throughout the tenure of your loan. The first installment may be different depending on the date of disbursal.
- lock_openWhen does the money go out of my account?
Once a loan transaction is closed by the borrower, the money is collected from the Investor within 3-5 working days.
- lock_openWill I know my Borrowers?
- lock_openCan I lend more than once?
Yes, you can. You can lend to multiple borrowers and once you finish the tenure for the committed amount.
- lock_openI want to change the terms and conditions of loan after giving the loan money.
Sorry, we cannot do that. The loan agreement is a legal document, and we cannot modify it.
- lock_openWhat if LoanMeet shuts down ?
Lets hope this does not happen. Even if this occurs, then the legal loan agreement between borrower and lenders still holds true. You will not lose money, as the borrower is still obliged to make EMI payments.
- lock_openCan I choose the date to get my repayment?
No, repayment date for all loans is based on borrowers salary date. If the individual gets salary on the last day of month, then the loan payment would be 2nd of the month.
- lock_openWhat kind of returns can I expect?
The rate of returns depends on your investments. We project average of 21% risk-adjusted returns. So far, we have not lost a single rupee of investors funds. In fact, all of our borrowers have paid on-time since the start of our operations. We hope to continue this trend through our due diligence, and bring only good borrowers to LoanMeet platform.
- lock_openWhat happens in case of delayed or non-payment by Borrowers?
In case the EMI is not paid by the due date, additional penal interest as per LoanMeet will be charged to the Borrower on the amount due for time period lapsed after the due date. Borrowers will be liable to pay their Lender(s), this penal interest. In the worst case scenario LoanMeet will facilitate the collections through empaneled agencies. These are reputed collection agencies which are empaneled by banks and financial institutions. This also includes legal process for recovery of funds if required.
- lock_openWhat happens in case of delayed or non-payment of EMI?
In case the EMI is not paid by the due date, additional penal interest of 2% p.m. will be applied to the amount due for the duration of delay which Borrowers will be liable to pay their Lender(s) + collection charges of Rs. 500 will be charged to the Borrower by LoanMeet. In the worst case scenario, LoanMeet will facilitate the collections through empaneled agencies. These are reputed collection agencies that are empaneled by any bank and financial institutions. This also includes legal process for recovery of funds if required.
- lock_openIs my interest income through LoanMeet taxable?
All repayments you receive from Borrowers on LoanMeet will be without any tax deduction. We'll provide an annual income statement to you to download from your dashboard. Earnings will be taxable as per the income tax rules that apply to you.
- lock_openHow long does it take to find Borrowers?
This will generally depend on the number of Borrowers in the LoanMeet marketplace who are willing to borrow from you based on the return you expect and the money you are willing to lend.
- lock_openCan I re-lend to the Borrower whom I earlier gave a loan?
Yes, you can. We have done that. However, we will again go through the credit verification process of the borrower, as this is a new loan. Everyone who wants to borrow is checked, verified and analyzed for credit and risk. That means we lend it to sensible borrowers with proper agreements. There are agencies that LoanMeet has tied up for verification and recovery to chase any missed payments or non-payments. These are reputed collection agencies which are empaneled by banks and financial institutions. To manage risk, please spread your money to a number of borrowers. At LoanMeet, we bring only good credit worthy borrowers to our investors. There may be a rare occasion where one of your borrowers cant pay you back, perhaps due to redundancy or illness or death. In that case, we will work with the borrower on a new payment plan.
- lock_openWhat is the typical loan amount and loan period ?
The amount and loan period for personal and business loans are different. a. Personal Loan Loan Amount - Rs. 50,000 to Rs. 5 Lakhs Loan Period - 3 months to 2 years b. Business Loan Loan Amount Rs. 5 Lakhs to Rs. 50 Lakhs Loan Period 3 months to 12 months