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.Invest Now
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.
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.
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|
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:
"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.
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.
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.
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.