Q: Who can lend on Finsafe Advisors Pvt Ltd?
A: Any Indian resident, with an age of 25 years or above with a minimum annual income of Rs. 10 lacs, with a valid bank account and PAN card can lend on Finsafe Advisors Pvt Ltd. However, not more than 30% of your gross income should be derived from lending to individual borrowers. Also, RBI listed finance companies or Companies formed under the Indian Companies Act are also eligible to apply as Lenders.
Q: How am I helping others achieve financial success? How will this benefit me?
A: Finsafe Advisors Pvt Ltd 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 Condition to understand the risk involved.
Q: How do I become an investor on Finsafe Advisors Pvt Ltd?
A: The process is simple. Please click on Sign Up, fill in some basic details about yourself, pay the registration fees through any of your convenient online payment methods like credit card, net banking etc. Our support team will verify your details and get in touch with you within 12-24 hrs. Once your registration is verified and approved, you can log on to your Finsafe Advisors Pvt Ltd account and start lending.
Q: How much money can I lend? And for what period?
A: You can start investing from Rs. 10,000/- onwards. Borrowers are registered on the website for a loan period ranging from 6 – 36 months. You can choose the Borrower according to the loan period that suits you.
Q: Why should I pay a fee to invest my own money?
A: The up-front registration fee is used to process and verify the documents received from you. It is also adjusted towards the legal agreement and documentation which is done with the borrowers before loan disbursal. Finsafe Advisors Pvt Ltd believes in transparency and does not have any hidden costs, nor do we keep any margins from the interest rate decided mutually between the borrower and lender.
Q: Why does Finsafe Advisors Pvt Ltd need to verify my details?
A: Finsafe Advisors Pvt Ltd conducts a verification process of the data and documents provided by Lenders. In addition, we appraise each request to ensure that concerned Lender can afford to give out loans within the boundaries of statutory laws of India. We also make sure that Lenders do not use our platform to fund any prohibited actions or purposes.
Q: Can I choose the date to get my repayments?
A: No, repayment dates are fixed in between 1st to 15th of every month.
Q: What kind of returns can I expect?
A: Returns depend on the credentials of borrowers and the ongoing demand for lenders in Finsafe Advisors Pvt Ltd marketplace. We have an automated system, which assigns a rate of interest to each borrower. It ranges between 12% to 28%. Returns depend on how a lender spreads his investment.
Q: How can I control the returns from my investment?
A: You can control your returns by spreading your investment across borrowers at different loan amounts and rate of interest. For more, refer to this illustration.
Q: What is the maximum amount I can invest in one borrower?
A: An individual lender can invest up to 20%, HNIs (High Net worth Individual’s) up to 50% and institutional lenders upto 100% of the total loan amount requested by an individual borrower. This policy is to hedge the risk of the lenders by spreading their investments across borrowers. However, in case of loans to Baxi operators, lenders can invest upto 100% of the total loan requirements.
Q: How safe is my money?
A: All borrowers listed on Finsafe Advisors Pvt Ltd marketplace are curated through various data points. Infact, Finsafe Advisors Pvt Ltd has a strict borrower selection criterion. Although, this is unsecured lending, lenders can seek legal help and Finsafe Advisors Pvt Ltd also has a soft recovery and collections process to ensure the safety of the monies invested through the platform. However, you must understand that this does not ensure guaranteed returns or zero defaults. Your money is not insured and is not risk-free. Please read and understand Terms and Conditions before investing. Contact Us for any clarifications.
Q: How are repayments calculated?
A: Repayments are equated monthly installments (EMIs) calculated using the reducing balance method. 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.
Q: Do I have to put money upfront into my Finsafe Advisors Pvt Ltd account?
A: Yes. To ensure secure, fast and smooth transfer of funds with every transaction on the platform, Finsafe Advisors Pvt Ltd has opened a Lenders Escrow account with ICICI Bank under the trusteeship of IDBI Bank. Lender’s will get a virtual account number with an IFSC code linked to escrow account. They need to transfer the amount they wish to invest through Finsafe Advisors Pvt Ltd into this virtual account. Once their loan transactions with the borrower is complete, Finsafe Advisors Pvt Ltd will transfer the amount from the Escrow account directly to the borrower’s bank account.
Q: When does the money go out of my virtual account linked to the Lenders Escrow account?
A: Once a loan transaction is closed with the borrower, he has signed the loan agreement and provided the PDCs the lender is officially informed by Finsafe Advisors Pvt Ltd and the loan amount is transferred from the lenders virtual account to the borrower’s bank account immediately.
Q: What are the risks? How is the risk managed?
As with any lending, there are some risks, the biggest being that a borrower doesn’t repay. At Finsafe Advisors Pvt Ltd we try to keep this risk to a minimum by ensuring that every borrower registered with us is identity-checked, credit-checked and risk-assessed by our experienced team. The loan is disbursed only after the borrower signs the legally-bound loan agreement. In case of default we use legally-compliant collections agencies to follow-up and collect missed payments on your behalf. Though we do our best to manage the risk at every step, defaults may happen. We encourage you to spread your investment across a number of borrowers to reduce risk.
Lenders can also opt for loans against collateral through our latest product offering made available through a tie-up with Baxi, India’s first bike-taxi operators. Lenders can choose to fund drivers keen to work as Baxi-operators and hence want auto-loans to buy bikes. It’s an income generating asset for them and an asset-based investment for the lenders. Click here to know more about this product.
Q: What happens in case of delayed or non-payment by Borrowers?
A: In case the EMI is not paid on the due date by Borrower(s), additional penal interest applicable as per Finsafe Advisors Pvt Ltd Policy will be applied to the due amount for the duration of delay which Borrowers will be liable to pay directly to their Lender(s). A penal interest of Rs. 100/- for delays upto 10 days and Rs. 250/- for delays of more than 10 days will be payable by the Borrower directly to the Lender. These charges are applicable for each instance of delayed repayment.
In the worst case scenario, Finsafe Advisors Pvt Ltd will facilitate the collection through our in-house collection mechanism and also send a legal notice on behalf of the lender to the borrower.A non-refundable charge of Rs. 100/- per legal notice will be payable by the lender to Finsafe Advisors Pvt Ltd . In case the money is still not recovered we hire reputed, legally-compliant, recovery agencies. The expenses incurred by the recovery agency will be borne by the lender.
For example, say the amount to be recovered was Rs. 200/- and the recovery agency recovers Rs. 150/- then they will deduct their charges (say, Rs. 20/-) and return the balance Rs. 130/- to the lender.
Q: Will I know my Borrowers?
A: Once a Borrower listing has been approved by Finsafe Advisors Pvt Ltd , their entire profile can be viewed by all registered Lenders including their financial information and KYC details. While we do not reveal the Borrower’s address and phone no., you may contact Borrowers through Finsafe Advisors Pvt Ltd messaging system and chat/email directly with the Borrower. For further information, please view Finsafe Advisors Pvt Ltd Policy and Terms and Conditions.
Q: Is my interest income through Finsafe Advisors Pvt Ltd taxable?
A: All repayments you receive from Borrowers on Finsafe Advisors Pvt Ltd will be without any tax deduction. We will 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. Paying the applicable tax on income earned is your responsibility and Finsafe Advisors Pvt Ltd is not liable for any default on the same.
Q: How long does it take to find Borrowers?
A: You can find active borrowers on Finsafe Advisors Pvt Ltd 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. It’s an open market place and finding a borrower matching your loan amount and desired rate of interest is dependent on your ability to manage your risk and negotiate a deal.
Finsafe Advisors Pvt Ltd also offers Auto-invest a fully-automated tool that matches Lender’s investment criteria with borrower requirements, provides an indication about the Borrower’s capability to efficiently repay the loan. This is done basis certain criteria selected, approved and activated by the lenders on their respective accounts.
Going forward, all borrower requirements – personal, business, collateralized – will be first fulfilled through automated investment and only any balance requirement will be listed for manual investment option.
Q: Can a non-individual lend through Finsafe Advisors Pvt Ltd ? Can I invest through my company?
A: There is option for institutional lenders and NBFCs to fund through the website provided they meet the set criterion and accept the T&Cs. Please do CONTACT US to discuss this further.
Q: How is the lenders escrow account beneficial to me?
A: Escrow account ensures secure, fast and smooth transfer of funds with every transaction on the platform. Faster transactions lead to faster disbursal and faster investment. Automated, online transactions with least human interface means seamless accounting procedures.
Q: Who can lend on Finsafe Advisors Pvt Ltd ?
A: Any Indian resident, with an age of 25 years or above with a minimum annual income of Rs. 10 lacs, with a valid bank account and PAN card can lend on Finsafe Advisors Pvt Ltd . However, not more than 30% of your gross income should be derived from lending to individual borrowers. Also, RBI listed finance companies or Companies formed under the Indian Companies Act are also eligible to apply as Lenders.
Q: How am I helping others achieve financial success? How will this benefit me?
A: Finsafe Advisors Pvt Ltd 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 Condition to understand the risk involved.
Q: How do I become an investor on Finsafe Advisors Pvt Ltd ?
A: The process is simple. Please click on Sign Up, fill in some basic details about yourself, pay the registration fees through any of your convenient online payment methods like credit card, net banking etc. Our support team will verify your details and get in touch with you within 12-24 hrs. Once your registration is verified and approved, you can log on to your Finsafe Advisors Pvt Ltd account and start lending.
Q: How much money can I lend? And for what period?
A: You can start investing from Rs. 10,000/- onwards. Borrowers are registered on the website for a loan period ranging from 6 – 36 months. You can choose the Borrower according to the loan period that suits you.
Q: Why should I pay a fee to invest my own money?
A: The up-front registration fee is used to process and verify the documents received from you. It is also adjusted towards the legal agreement and documentation which is done with the borrowers before loan disbursal. Finsafe Advisors Pvt Ltd believes in transparency and does not have any hidden costs, nor do we keep any margins from the interest rate decided mutually between the borrower and lender.
Q: Why does Finsafe Advisors Pvt Ltd need to verify my details?
A: Finsafe Advisors Pvt Ltd conducts a verification process of the data and documents provided by Lenders. In addition, we appraise each request to ensure that concerned Lender can afford to give out loans within the boundaries of statutory laws of India. We also make sure that Lenders do not use our platform to fund any prohibited actions or purposes.
Q: Can I choose the date to get my repayments?
A: No, repayment dates are fixed in between 1st to 15th of every month.
Q: What kind of returns can I expect?
A: Returns depend on the credentials of borrowers and the ongoing demand for lenders in Finsafe Advisors Pvt Ltd marketplace. We have an automated system, which assigns a rate of interest to each borrower. It ranges between 12% to 28%. Returns depend on how a lender spreads his investment.
Q: How can I control the returns from my investment?
A: You can control your returns by spreading your investment across borrowers at different loan amounts and rate of interest. For more, refer to this illustration.
Q: What is the maximum amount I can invest in one borrower?
A: An individual lender can invest up to 20%, HNIs (High Net worth Individual’s) up to 50% and institutional lenders upto 100% of the total loan amount requested by an individual borrower. This policy is to hedge the risk of the lenders by spreading their investments across borrowers. However, in case of loans to Baxi operators, lenders can invest upto 100% of the total loan requirements.
Q: How safe is my money?
A: All borrowers listed on Finsafe Advisors Pvt Ltd marketplace are curated through various data points. Infact, Finsafe Advisors Pvt Ltd has a strict borrower selection criterion. Although, this is unsecured lending, lenders can seek legal help and Finsafe Advisors Pvt Ltd also has a soft recovery and collections process to ensure the safety of the monies invested through the platform. However, you must understand that this does not ensure guaranteed returns or zero defaults. Your money is not insured and is not risk-free. Please read and understand Terms and Conditions before investing. Contact Us for any clarifications.
Q: How are repayments calculated?
A: Repayments are equated monthly installments (EMIs) calculated using the reducing balance method. 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.
Q: Do I have to put money upfront into my Finsafe Advisors Pvt Ltd account?
A: Yes. To ensure secure, fast and smooth transfer of funds with every transaction on the platform, Finsafe Advisors Pvt Ltd has opened a Lenders Escrow account with ICICI Bank under the trusteeship of IDBI Bank. Lender’s will get a virtual account number with an IFSC code linked to escrow account. They need to transfer the amount they wish to invest through Finsafe Advisors Pvt Ltd into this virtual account. Once their loan transactions with the borrower is complete, Finsafe Advisors Pvt Ltd will transfer the amount from the Escrow account directly to the borrower’s bank account.
Q: When does the money go out of my virtual account linked to the Lenders Escrow account?
A: Once a loan transaction is closed with the borrower, he has signed the loan agreement and provided the PDCs the lender is officially informed by Finsafe Advisors Pvt Ltd and the loan amount is transferred from the lenders virtual account to the borrower’s bank account immediately.
Q: What are the risks? How is the risk managed?
As with any lending, there are some risks, the biggest being that a borrower doesn’t repay. At Finsafe Advisors Pvt Ltd we try to keep this risk to a minimum by ensuring that every borrower registered with us is identity-checked, credit-checked and risk-assessed by our experienced team. The loan is disbursed only after the borrower signs the legally-bound loan agreement. In case of default we use legally-compliant collections agencies to follow-up and collect missed payments on your behalf. Though we do our best to manage the risk at every step, defaults may happen. We encourage you to spread your investment across a number of borrowers to reduce risk.
Lenders can also opt for loans against collateral through our latest product offering made available through a tie-up with Baxi, India’s first bike-taxi operators. Lenders can choose to fund drivers keen to work as Baxi-operators and hence want auto-loans to buy bikes. It’s an income generating asset for them and an asset-based investment for the lenders. Click here to know more about this product.
Q: What happens in case of delayed or non-payment by Borrowers?
A: In case the EMI is not paid on the due date by Borrower(s), additional penal interest applicable as per Finsafe Advisors Pvt Ltd Policy will be applied to the due amount for the duration of delay which Borrowers will be liable to pay directly to their Lender(s). A penal interest of Rs. 100/- for delays upto 10 days and Rs. 250/- for delays of more than 10 days will be payable by the Borrower directly to the Lender. These charges are applicable for each instance of delayed repayment.
In the worst case scenario, Finsafe Advisors Pvt Ltd will facilitate the collection through our in-house collection mechanism and also send a legal notice on behalf of the lender to the borrower.A non-refundable charge of Rs. 100/- per legal notice will be payable by the lender to Finsafe Advisors Pvt Ltd . In case the money is still not recovered we hire reputed, legally-compliant, recovery agencies. The expenses incurred by the recovery agency will be borne by the lender.
For example, say the amount to be recovered was Rs. 200/- and the recovery agency recovers Rs. 150/- then they will deduct their charges (say, Rs. 20/-) and return the balance Rs. 130/- to the lender.