P2P loans for Business Expansion
Expand Your Business with a P2P Loan
India’s economy is one of the fastest growing in the world. The Asian Development Bank projects 7.4% growth in fiscal year 2017, which follows up on 7.6% actual growth in fiscal year 2016.
When economies grow this fast, people feel more comfortable about starting new businesses or growing existing businesses as they feel optimistic about the future. And small businesses are key to an economy growing 7% per year, the highest of all major world economies.
The Funding Gap
The problem is that banks have not caught up to these trends and getting a business loan for MSME sector is incredibly difficult all over India and in some markets it’s impossible.
Growing businesses need cash and banks are no help so where can you go?
Peer to Peer lending as a borrowing option is the obvious solution. Here at i2iFunding we can do everything online, electronically, paperless and fast. There are some great benefits to using a p2p loan to grow your business. Here are some things we do to make the process easier and smoother for you and your business.
Easy and Hassle Free Process
You can apply for the loan online from the comfort of your home. You can upload all the documents online and if all required details are provided accurately, your business loan gets approved in one day. You can check the funding status of your loan online. Upon approval, you know exactly what your rate and payment will be, to see if the loan makes sense for your business. You can borrow up to Rs 50 Lakhs for your business in increments of Rs 5000.
You can select the term (tenor) that appeals to you. Are you using your funds for a 12 month project? Great, then pick a 12 or 18 month term. You can match the term of the loan with how you intend to use the money.
Rates & Fees
The fees for business loans range from 4% for A category loans up to 8% for F category loans as seen on this chart below:
This is the origination fee, the fee to originate, approve and fund the loan. Then we have your interest rate. Your interest rate is calculated through our proprietary scoring model. A grade loans pay 12-14.99% and F grade loans pay up to 36%. The combination of your repayment history, CIBIL score and other documentation like proof of assets and tax returns you are willing and able to provide will determine your proprietary score and your loan grade.
No Prepayment Penalty
An i2iFunding loan provides great flexibility for your business. If you generate enough cash from your growing business to pay the loan off early, then go right ahead. There’s no penalty to do so. Pay it off and go along your way. More importantly, you will have a loan paid off on our platform with a zero balance when you come back to borrow again. That means your rate will go down on the next loan request.
P2P Lending for business expansion is something that just makes sense. You can qualify easily and quickly. You get to pick the tenure of the loan. i2iFunding is completely transparent about what it will do, why and for how much. You stay in control of the process and get what you need to grow your business.