P2P Lending - Principal Protection T&C




Principal Protection’ is being offered by RNVP Technology Private Limited / i2ifunding.com (the ‘Company’) to the Investors subject to the terms appearing hereinafter. Principal Protection will be available to only those Investors, who select the option at the time of investment and subject to these terms. Investors are requested to go through these terms carefully. Once Investor clicks acceptance, Investor will be deemed to have gone through the same and consented to these terms.

Principal Protection will be applicable only in respect of a particular loan transaction/Agreement in respect of which Investor has chosen the option of Principal Protection, notwithstanding Investor may have invested in more than one loan transaction.


Following terms shall have meaning ascribed to them:

1.1 Bad debt” shall mean loan which fulfils conditions as detailed in Clause 8;

1.2 “Borrower” shall mean the person who has taken loan under a definite Loan Agreement’

1.3 ‘Legal Proceeding” shall mean the proceeding before an Arbitrator /court or Tribunal;

1.4 “Loan Agreement” shall mean the definite written agreement signed and executed between Investor and Borrower;

1.4 “Principal” or “Principal amount” shall mean the remaining principal amount which is/are legitimately due from the Borrower.


To qualify under the Principal Protection, all of the following criteria are pre-requisite:

2.1. Investor must have disbursed entire loan amount by entering into a definite Loan agreement with the Borrower, as per the terms & policy of the Company and as per terms of the Loan Agreement; and

2.2. Loan must become Bad Debt; and

2.3. Investor is willing to abide by (and continue to do so) these terms and the terms of assignments, deeds, other documents if any, with the Company; and

2.4. Investor is willing to cooperate with the Company for the recovery of the outstanding from the Borrower; and

2.5. Investor must make contribution and comply Clause 4& 5; and

2.6 Investor must be ready and willing to comply with his/its obligations and terms of the Loan Agreement.

2.7 There must be funds availability in the Principal Protection Reserve.


At the time of making investment, Investor may chose option of Principal Protection and the extent of protection. At present extent of 100 %, 75%, 50% or 25% of the Principal Protection is available, which Investor may choose.


For the purpose of Principal Protection, the Company will create a ‘Principal Protection Reserve’, out of the ‘Principal Protection Fee’ to be paid by each Investor as provided in Clause 5. Company will display funds available under the Principal Protection Reserve to the Investors. The funds under Principal Protection Reserve shall be managed by the Company separately, to be utilised for the purpose under these terms.


5.1 The Investor, who has chosen “Principal Protection” shall contribute to the Principal Protection Reserve as per the followings:


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%

5.2 Thus, in case Investor invests in a loan of 19 % return and Principal Protection fee for the same is 4 % then the Investor will get EMI at 15 % (19%-4%) return and such 4 % will be charged as ‘Principal Protection Fee’.

5.3 The Principal Protection Fee shall be deducted from each EMI received in a month from the Borrower. The Company shall be entitled deduct /to cause such deduction from the EMI entitlement of the Investor. If the Loan is being operated through Nodal Account, the Company shall be entitled to give such standing instruction to the Bank operating such Nodal Account as it deem fit for the purpose of deduction of Principal Protection Fee.

5.4 Such contribution shall be non-refundable. The Principal Protection Reserve shall always vest in the Company and shall not be deemed to be held in trust for Investors. The Principal Protection Reserve shall be managed by the Company at its discretion.


6.1 Company will provide protection up to 100%, 75%, 50% or 25 % (depending upon the Principal Protection chosen by the Investor) of the of remaining principal amount which is/are legitimately due from the Borrower, against a genuine and bonafide claim made by Investor, when loan granted has become Bad Debt.

6.2 Principal Protection is however subject to the availability of funds in Principal Protection Reserve and subject to following condition. In case for a particular month the reserve available is less than the amount to be payable to the Investors (all those who have chosen Principal Protection) under the Principal Protection, then percentage of available reserve against the amount payable to all Investors under the Principal Protection shall be calculated and every Investor will get the Principal Protection for the month at pro-rate basis. E.g. if there are 10 Investors to whom Rs. 100/- is payable under the Principal Protection and the available fund is only Rs. 900/-, then all the Investors (entitled to Principal Protection) will get 90 % of their entitlement under these terms. The balance Rs. 10/- will be considered for payment in the next month along with the new liabilities for the month. The balance amount can be carried forward to next month for a period of 12 months. If it is not completely paid within this period then it will be written off.


7.1 Loan granted by Investor to the Borrower shall become “Bad Debt”, when the following conditions are satisfied:

7.1.1 When Borrower is in three (3) consecutive defaults in the payment of EMIs; and /or

7.1.2 A legal notice has been issued by Investor /Assignee terminating the loan and demanding the entire outstanding amount as per the terms of the Loan Agreement; and

7.1.3 When a legal proceeding is initiated against the Borrower for the recovery of the entire outstanding amount.

7.1.4 If 3 (three) months have elapsed since the start of legal proceeding, and Borrower has not paid the outstanding amount.

7.2 Loan to the Borrower shall not be a bad debt, when:

7.2.1 Prior to the legal proceeding, Borrower is willing to settle the matter and enters into a written understanding with Investor /Assignee, in respect thereof; or

7.2.2 After receipt of the notice from any court or tribunal, the Borrower willing to settle the matter and enters into a written understanding with Investor /Assignee, in respect thereof; or

7.2.3 Only a legal action under section 138 of the Negotiable Instrument Act, 1881 is undertaken or a criminal complaint /FIR is lodged.


To claim the benefit under these terms, Investor has to:

8.1 Submit a written request in the format prescribed by the Company with all documentary evidence leading to conclusion that the Loan has become bad debt; and

    1. Issue a written confirmation of the assignment of the loan in favour of the Company; and

8.3 If the assignment is not feasible in any manner or is declared to be not valid/proper, be willing (and continue to be so) cooperate with the Company for the recovery of the outstanding from the Borrower, and in this respect Investor shall sign all such document as is required for filing a legal case of recovery, complaint etc. against the Borrower.


Principal Protection payment to Investor shall always be subject to these terms & conditions and that Investor will always cooperate with the company in recovery proceedings against the Borrower or in any action or litigation arising out of recovery proceeding in any court, tribunal or authority.


Investor shall have right to get excess amount recovered pursuant to a legal action against or settlement with the Borrower subject however to the Company’s entitlement which shall be (a) principal protection amount paid to investor (b) the cost of litigation incurred by the Company determined by the Company; and (c) Company’s fee. It shall be at the absolute discretion of the Company to take decision as to whether to make settlement with the Borrower at any stage. The company’s entitlement in the hands of the Investor shall be in trust for the Company and be repayable by the Investor to the Company immediately.


Investor will cooperate in every manner with the Company for the recovery of all the outstanding from the Borrower, including the signing of all the documents/deeds/agreement (including a Power of attorney) as may be required in respect thereof. Investor will always act in the best interest of the company.


Nothing contained herein puts any obligation upon the company to make recovery as per the agreement between the Investor and Borrower or Company makes guarantee in any manner on behalf of the Borrower.


The Company may, at its absolute discretion, have an insurance cover of its obligation under these terms or corpus. Investor will be required to sign all such document as may be necessary in respect thereof.


Investor will defend, indemnify, and hold harmless the company, its affiliates, employees, directors and representatives from all losses, costs, actions, claims, damages, expenses (including reasonable legal costs) or liabilities, that arise from or relate to :

15.1 The breach of these terms;

15.2 Any losses, costs, actions, claims, damages, expenses (including reasonable legal costs) or liabilities, which the Company may suffer due to Investor action, inaction or breach of the meaning and intent of these terms.

15.3 If Investor doesn’t cooperate with the Company;

15.4 Investor’s any action or inaction, which is not in the interest of the Company.


These terms shall be governed by and constructed as per laws of India and the courts at Delhi/Noida shall have exclusive jurisdiction for any kind of dispute arising out of these terms.


If any dispute arises between Company and Investor pertaining to any matter related to these terms, the dispute shall be referred to a sole Arbitrator appointed by the Company. The place of arbitration shall be at Delhi and language used English. The provisions of Arbitration & Conciliation Act, 1996, or any statutory modification or enactment thereof shall govern the arbitration proceedings.


The Company may at its discretion amend the terms of these terms. Thus, each time Investor opt for Principal Protection, Investor need to carefully go through these terms.


The Company’s obligation of Principal Protection will be discharged in following cases:

    1. The Borrower paying entire principal and interest amount to Investor; or

    2. Investor receiving Principal protection amount payable under this Agreement.

Investor’s liability shall however survive unless entire amount due and outstanding from the Borrower is recovered or settled.


20.1 These terms set out the entire agreement and understanding between the Parties with respect to the subject matter of it. These terms supersede all prior discussions and correspondence, which shall not have any further force or effect.

20.2 Investor will not be entitled to, nor purport to, assign, transfer, charge or otherwise deal with all or any of rights and/or obligations under these terms nor grant, declare, create or dispose of any right or interest in it, in whole or in part provided, however, that the Company shall be entitled to assign any or all of its rights and/or transfer any or all of its obligations hereunder to a third party or any of its Affiliates/associates/sister concern and for this purpose Investor will without demur execute such instrument as may be requested by the Company.

20.3 Each of the provisions as set out in these terms is separate and distinct and is to be construed separately from the other provision. The Parties, acknowledge such provisions are reasonable both individually and in aggregate. However, if any such provisions shall be found to be void or unenforceable, parties agree to give the legal force to the intent of these terms.

20.4 No failure or delay by the Parties in exercising any right or remedy provided by law under or pursuant to these terms shall impair such right or remedy or operate or be construed as a waiver or variation of it or preclude its exercise at any subsequent time and no single or partial exercise of any such right or remedy shall preclude any other or further exercise of it or the exercise of any other right or remedy. The rights and remedies of the Parties under or pursuant to these terms are cumulative, may be exercised as often as such Party considers appropriate and are in addition to its rights and remedies under general law.

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