P2P acts as an online platform that offers lenders and borrowers convenience, flexibility and choice when lending and borrowing. P2P models combine lenders and borrowers and make it easier for lenders and borrowers to match.
Borrowers can access funds at lower interest rates than banks, while lenders can earn more income from bank savings. Before we dig into Mobiquik Xtra let us first understand how P2P lending works and why it is a viable investment option.
P2P business model
The crowd-funding approach is the foundation of peer-to-peer lending. Most P2P lending platforms are established as NBFC fintech companies (non-banking finance companies). The P2P model is a contemporary credit model to address current business credit needs in contrast to traditional banking and financial institutions.
P2P lending provides a platform for raising all types of funds from various sources. As per the P2P business model, a loan demand auction takes place and the borrower is given the option to accept or reject the lender’s bid. Additionally, the platform provides credit assessment, debt recovery and other services. Typically, the forum coordinates the agreement between the lender and the borrower.
P2P Business Loan Policy
A policy has been established outlining requirements for P2P participation, cost of P2P services and guidelines for matching lenders and borrowers. Lenders and borrowers must sign agreements to authorize loans.
P2P Participant Guidelines
P2P lenders must conduct due diligence on their participants, evaluate borrowers on their platform for creditworthiness and risk, and then provide prospective lenders on the platform with the results. A P2P lender must have evidence of loan agreements and accompanying documents, as well as prior and express authorization from participants before accessing their credit information. P2P lenders should assist in loan disbursement, repayment and recovery.
An escrow account system controlled by a bank-sponsored trustee is used for P2P platform money transfers. Two escrow accounts should be maintained by P2P, one to receive funds from lenders and another to collect funds from borrowers. Cash transactions are not allowed for P2P.
What is MobiKwik Xtra?
With an investment called MobiKwik Xtra, you have the opportunity to earn up to 12% per annum by making direct loans to creditworthy customers. Lendbox, a peer-to-peer investment platform used for (Transactry Technologies Pvt Ltd)
Allocation of funds among various borrowers
Before selecting a borrower to provide funds, hundreds of data points on income and spending behavior are scrutinized. Funds from investors are distributed to lakhs of borrowers in units of 100 rupees. Besides reducing risk, it also diversifies investments.
Xtra MobiKwik Eligibility
Any Indian (resident or non-resident) above 18 years of age or a business with a PAN card and an Indian bank account in good standing is eligible to invest in Lendbox. NRO bank account is another way for NRIs to invest in extra.
Documents required to start investing in MobiKwik Xtra
No more documents are required if you have already completed KYC with MobiKwik. Otherwise, all you need to do to start investing with Xtra is to complete PAN and Aadhaar based KYC.
Start investing from as low as Rs. 1000 and above Rs. 10 lakhs. Contact us if you want to invest more than Rs. 10 lakhs and our staff will be happy to assist you. As per RBI norms, net worth certificate is required for those investing more than Rs. 10 lakhs.
Charges for MobiKwik Xtra investment
No investment fee or commission is assessed by Xtra for deposits or withdrawals.
Composition of Earnings
Your investment interest income is not reinvested. Your account is constantly updated with earnings, which you can withdraw at any moment.
Is profit tax exempt? Will tax be deducted from my profit on withdrawal?
Interest income earned is classified under “Other Income” and taxed as per your income tax bracket. Tax is not withheld when you withdraw the money or at source.
Benefits of MobiKwik Xtra
Borrowers, like a standard loan agreement, are expected to make their loan payments monthly, allowing investors to sit back and watch their income roll in regularly.
Low entry limit
To invest in MobiKwik Xtra, investors need not be millionaires. Almost anyone can venture into this asset class and fund debt notes in increments as small as Rs. 1000 makes this asset class one of its most attractive features.
Controlling one’s investment plan is crucial for some investors. MobiKwik Xtra gives investors flexibility and control by allowing them to decide everything from loan type, tenor and borrower eligibility requirements.
MobiKwik and its partners under RBI regulation use best-in-class risk assessment techniques to minimize investor risk; Profits are not guaranteed.
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