Principal Protection – Safeguard your P2P investments

To comply with “Master Directions – Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions,” (RNVP Technology Pvt Ltd.) has decided to terminate principal protection program for all loans disbursed through its platform.

Principal Protection – What an investor cannot do without?


Dear Readers,


Please note our Principal protection, Terms & condition have changed w.e.f 10th July 2017.

You can find more details about revised program here.

What’s the purpose of the seat belts or the air bags in a car?

Why do we wear life jackets when boating?

Why do we buy insurance?

You have been able to answer each of these questions to yourself, very smartly.

None of them needs a second thought.

Let us ask you another, related question?

What about the safety of your investments?p2p investment safety

Don’t answer this right away. Hold this thought for a minute.

Surely you would accept that as investors we want the best returns on our investment. We want our money to work as hard as possible for us.

That’s the reason P2P Lending has become a favorite option too. Who wouldn’t want as high as 30% returns that too fixed.

So, in search for the best for your investment, you keep moving across various P2P platforms (where you have your profiles ready and done), looking for the borrowers who can help you generate the highest returns.

And why shouldn’t you?

The only question we would like to ask is whether your investment situation resembles this – “Driving a car at 100 kms per hour, on a busy highway, without the seat belt on.

What if something goes wrong with your investments, the loans you have made? What if the borrower defaults?

What if you lose your money?

Difficult questions, which did not have any answers, at least till now.

But that has changed. has now become the first and the only p2p platform to offer principal protection to every investor signed up on its platform.

As a part of this principal protection fund, in case a borrower, who you have lent money to, defaults, you will get up to 100% of your principal back.

So, you not only get to enjoy high fixed returns but also have your investment protected for possible defaults.

As a part of the policy, i2ifunding will set aside 5% of all loans made in a special Investor Protection Reserve. This in no way reduces the return on what you lend. The money is set aside from i2ifunding’s own money. It’s our skin in the game.

Read more on i2ifunding’s Principal Protection Fund here.

Contrast this with other investment options. See the image below.

Principal Protection plan - p2p investment

*The principal protection of 100% is offered in Category A Loans and 50% in Category F loans.

Even if you do a fixed deposit with a bank, it is secured only to the extent of only Rs. 1 Lakh by the government. That’s it. So, you do a Rs. 50,000 deposit or a Rs. 50 Lakhs deposit, if the bank shuts down, you will get back only Rs. 1 Lakh or your deposit amount, whichever is less.

What to say about market linked investments such as mutual funds, stocks, ULIPs, etc.? They offer Zero Protection against Loss.

The same is true for other platforms too. Let’s take an example.

Assume that you invested Rs. 20,000 each towards 5 loans in Category F – with a principal protection of 50% only. The interest rate for these loans is say, 30%.

One of the five borrowers defaults on the loan.

If you were on any other p2p platform, the principal amount that you will get back is only Rs. 80,000 plus interest, that is, Rs. 24,000, thus a total of Rs. 1,04,000. This turns out to be a measly return of 4% on the original investment.

With’s 50% principal protection for Category F, you would get back Rs. 10,000 (50% of Rs. 20,000), thus taking your total payback to Rs. 1,14,000. This is a return of 14%.

The illustration is simplistic but you get the point. With’s Principal Protection plan, the safety of your investment is fully taken care of.

Coming back to our question – What about the safety of your investments? The seat belt, err, the protection?

Well,the smart investor you are, you are not having second thoughts. Right

How Much You Should Invest in Peer to Peer Loans?
How to double your money in just over 4 years?


  • Ravi Mishra

    This is a very good initiative. But tell me, how do you provide legal validity to this plan? and what is the cap for principal protection?

    • Dear Ravi,

      Thank you for posting your comment.

      As far as legal validity to this plan is concerned, we’re signing a legal agreement with our investors to validate & authenticate principal protection plan. Extent of protection depends on the borrower risk category as given below

      Category A – 100% of your principal is protected
      Category B – 90% of your principal is protected
      Category C – 80% of your principal is protected
      Category D – 70% of your principal is protected
      Category E – 60% of your principal is protected
      Category F – 50% of your principal is protected

      You can read more details about principal protection here

      We hope this answers your questions.

      Best Regards
      Team i2iFunding

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