Principal Protection of P2P Investment
Safest Way to Invest Money, Up to 100% Principal Protection with High Returns

Safest Way to Invest Money Up to 100% Principal Protection with High Returns

i2iFunding is the only Peer to Peer (P2P) Lending platform in India that shows the highest level of commitment to safeguard the investment of the investors on its platform. It has pioneered the concept of "Principal Protection Fund" in India.Principal Protection Fund allows you to deal with the risk of potential defaults thus making your investments safer. i2iFunding has empowered its investors by consistently improving the functioning of the Fund. Sustainability of the Fund is the key in this effort. And i2iFunding has always passed this litmus test with flying colours.

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Principal Protection Reserve Fund Available in Principal Protection Reserve

Amount ₹ 16,88,178

Principal Protection Payment Principal Protection Amount Paid Till date

Amount ₹ 8,41,399
Loans 18
Investors 86
Principal Protection in Peer to Peer (P2P) Lending

What is Principal Protection in Peer to Peer (P2P) Lending?

On peer to peer lending platform, investors lend money to verified borrowers however loans listed on the platform are mostly unsecured personal loans. In case of a default by a borrower there is a small probability that investors may lose their principal amount lent to borrowers.

Principal protection fund is an innovative mechanism which offers investors to protect their principal. Investors get the option to select desired protection % (ranging from 0% to 100%) depending upon their risk appetite. Most of the investors have little idea about risks involved in P2P lending projects and creating principal protection fund is step towards making a favourable environment that will keep encouraging investors until they fully comprehend the nitty-gritty of the game.

Principal Protection - How it Works

Choose Your Own Protection Choose Your Own Protection:

  • Investors now have a choice to decide the level of protection for them depending upon their risk appetite and protection they want on their investment. At the time of investment itself, investors can select the extent of protection they want to take. Principal Protection Options across all risk categories currently availableto investors are;
    100%
    Principal Protection
    75%
    Principal Protection
    50%
    Principal Protection
    25%
    Principal Protection
    0%
    No Protection

No Upfront Fee No Upfront Fee:

  • No upfront fee is charged from the investors for principal protection.Principal Protection Fee, depending upon the risk category and extent of protection, is collected from the investors when they receive their monthly EMIs.
  • Paying fees for the principal protection is just like paying a premium on your insurance policy.

Dedicated and Transparent Principal Protection Reserve Dedicated and Transparent Principal Protection Reserve:

  • A separate Principal Protection Reserve is maintained by i2ifunding from the fee collected from investors. This reserve is maintained separately and cannot be used for any other purposes.
  • Principal Protection Reserve will be audited by independent auditors and amount available in reserve will displayed transparently on our website.
  • Amount paid from this reserve, number of loans for which principal protection amount has been paid and number of investors to whom amount has been paid will also be displayed transparently.

Principal Protection Payment Process in case of Default Principal Protection Payment Process in case of Default:

  • If a borrower delays the EMI payment by 3 months then i2i initiates legal action against the borrower on behalf of respective investors.
  • In case no recovery is made in next 3 months after initiating the legal action then Principal Protection kicks in and all the investors who had opted for Principal Protection option will get the respective % of principal which has become due till that month.
  • From next month onwards principal protection payment for these loans will be done every month.
  • Principal Protection payment will be made to investors on the last working day of the month.
  • If the funds available in the Principal Protection Reserve become less than the liability for the month then each investor will be paid on prorata basis and the difference will be carried forward to next month liability.

    Remember this as well:

    Whenever i2iFunding makes a payment from the Principal Protection Fund; it shouldn't be treated as the full and final settlement. i2iFunding will keep trying to recover all dues from the defaulters by taking a legal recourse. If it manages to recover the loan, along with interest due thereupon, i2iFunding will pay you all your dues at a future date. And that, too irrespective of whether you opted for 50% principal protection option or zero principal protection option.

Principal Protection Fee Structure

To make the principal protection programme more sustainable; i2iFunding has now started offering this option for a fee. Those who want to retain the risk and maximise returns may opt for the Zero Protection option. But if you want to safeguard your principal you will have to pay some fee.

This fee isn't recovered upfront. Instead, i2iFunding recovers fee from the EMI payable to you.

Borrower Risk Category Interest Rate Range Revised interest rate for 25% principal protection Revised interest rate for 50% principal protection Revised interest rate for 75% principal protection Revised interest rate for 100% principal protection
  Minimum Maximum Minimum Maximum Minimum Maximum Minimum Maximum Minimum Maximum
A 12.00% 14.99% 11.85% 14.59% 11.75% 14.24% 11.60% 13.84% 11.50% 13.49%
B 15.00% 17.49% 14.50% 16.74% 14.00% 15.99% 13.50% 15.24% 13.00% 14.49%
C 17.50% 19.99% 16.50% 18.74% 15.50% 17.49% 14.50% 16.24% 13.50% 14.99%
D 20.00% 22.49% 18.50% 20.69% 17.00% 18.99% 15.50% 17.19% 14.00% 15.49%
E 22.50% 24.99% 20.50% 22.69% 18.50% 20.49% 16.50% 18.19% 14.50% 15.99%
F 25.00% 36.00% 22.50% 33.00% 20.00% 30.00% 17.50% 27.00% 15.00% 24.00%
Calculate Impact of Principal Protection on EMICalculate Impact of Principal Protection on EMI

How to use Principal Protection Option Intelligently - Safe Investment Higher Returns

If you investing in P2P personal loans in a well-informed manner, they will help you earn attractive returns at minimal risk. For this to happen, always remember 5 things given below:

How to use Principal Protection Option Intelligently - Safe Investment Higher Returns
  • Risk and returns go hand in hand; more you safeguard yourself against potential hazards, lower would be the net gains you would earn on your P2P investments.
  • Initially, start with Rs 2 lakh as a total corpus and diversify across risk categories, geographies and borrower's profile. This should serve as the minimum security net with which you should invest.
  • Depending on your risk appetite and tenure of the loan you may opt for no or 25% principal protection option in category "A" and category "B" loans. As i2iFunding has tightened up all screws around credit assessment, you would rarely see defaults within these risk baskets.
  • Don't invest more than 50% of your total investments in P2P personal loans in category "F" loans and whenever you invest, try to opt for 100% Principal Protection Option.
  • For the categories "C", "D" and "E"; you should thoroughly check each borrower's profile and based on that take a call on the level of protection you want to go for.

What's the idea behind nurturing the concept of principal protection?

What's the idea behind nurturing the concept of principal protection?

"I am OK if the interest component remains unpaid, but I want to ensure that my principal isn't lost." This is a typical (and an expected) reaction of any person investing on a P2P Lending platform for the first time.

You may perceive it risky to lend your hard-earned money to unknown borrowers. But that doesn't make anonymous borrowers untrustworthy. In fact, known borrowers can take you for a ride if their intent is malicious.

Ill-spirited known borrowers know you won't act firmly against them even if they miss their repayment schedule frequently. And, they might always take you for granted that you won't initiate any legal action against them quickly.

This all may sound logical, but some of you would still have grudges to invest in Peer to Peer Lending (P2P) Lending projects, fearing the loss of capital.

i2iFunding understands all your concerns and sincerely wants to address them. This is the primary motive behind maintaining the Principal Protection Fund, which ensures you investment is safe while generating higher returns.

Investor's views on Principal Protection

  • Investor

    I have been investing on many P2P Lending platforms and all of them are having defaults. Only i2i had announced about Principal Protection earlier but many of us had our reservations regarding this protection and we were waiting to see whether i2i will pay or not in case of default.
    I was pleasantly surprised, when I got email from i2i that they have made first payment towards Principal Protection. This Principal Protection payment shows that i2i cares about protection of investor's money.

    Venkata Reddy Chamakura
  • Investor

    Principal Protection is what most of the P2P Platforms talks about but i2i Funding is the only platform which actually provided the same. Thanks to i2i for making investment of investors safe with Principal Protection program.

    A Bansal
  • Investor

    I have been lending on i2i platform for the past one year and has given loans to around 70 people. Out of these, only one turned out to be a bad loan, but I got principal amount back, thanks to the i2i's principal protection scheme. I guess i2i is safest p2p lending platform in India.

    Capt. Deepanshu Garg
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