Portfolio Performance of i2iFunding in the post Covid Period
During the unprecedented Covid crisis i2iFunding ensured that credit processes were fine tuned to face the challenges posed by lockdown and its impact on earning of borrowers. As a result i2i has been able to keep default under 1% of total loan amount disbursed since Apr-2020.
Table here shows % of loans disbursed in each risk category over the past two years. Third column loan principal under default as a % of overall loan amount disbursed in the corresponding risk category. E.g. if Rs. 100 were disbursed by i2i in last 2 years, then Rs. 29.8 were disbursed to borrowers in risk category G. Further 1.6% of Rs. 29.8 is currently under default (i.e. payment is delayed by more than 90 days). A weighted average of portfolio allocation % across risk categories and default under each risk category shows that total principal under default across all risk categories was just 0.9% of loan amount disbursed.
Highlights of Portfolio performance:
- In the last 2 financial years from April-2020 to March-2022, i2iFunding has disbursed more than 31,000 loans.
- Out of the total disbursed amount during this period, less than 1% of the loans have been delayed by more than 90 days.
- Lenders have made an average annualized return of 16.74% after adjusting for loan defaults.
- Zero loan default in the loans disbursed in Risk category X over this period.
- Investors who invested in Risk category X loans made 17.2% XIRR on their investment in this period.
What would be the value of investment in two years if someone invested Rs. 1 Lakh in April 2020?
An investor who invested 1 lakh at i2i funding in different risk categories, in the same proportion in which loans were made live on the platform would have made an annualized return of 16.7% on his investment, effectively increasing his investment to 1.36 Lakhs in a matter of two years. The chart shows the growth of investment value during this period.
Past two years performance shows that i2iFunding has provided a reliable investment options to its investors to maximize their returns while at the same time keeping their investment diversified across multiple borrowers.
At a time when stock markets are tumbling P2P investments provide an alternate asset class to investors to keep their investments safe.