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|
|Principal Protection %||Expected EMI||Revised Int. Rate||Total Repayment Amount||Total Interest Amount|
|0% Principal Protection||₹ 475||25%||₹ 5,700||₹ 700|
|25% Principal Protection||₹ 469||22.5%||₹ 5,628||₹ 628|
|50% Principal Protection||₹ 463||20%||₹ 5,556||₹ 556|
|75% Principal Protection||₹ 457||17.5%||₹ 5,484||₹ 484|
|100% Principal Protection||₹ 451||15%||₹ 5,412||₹ 412|
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.