What is a Faircent Personal Loan?

Faircent Personal Loan is a financial product offered by Fairassets Technologies Pvt. Ltd., doing business as Faircent, which operates as a Peer-to-Peer (P2P) lending platform. Registered with the Reserve Bank of India (RBI) as an NBFC-P2P, Faircent connects borrowers with lenders directly via its platform, enabling individuals to avail of personal loans for various purposes. The loan amount, interest rate, and tenure depend on the borrower’s profile and loan requirement, and the platform processes loans online, offering fast and hassle-free disbursals. Borrowers can access personal loans for debt consolidation, business expansion, home renovations, weddings, education, or medical emergencies, among other uses.

Faircent Personal Loans come with flexible loan terms, competitive interest rates starting at 9.99%, and the convenience of online processing, with loan approval and disbursement often completed within two days. Multiple lenders fund these loans through the platform, allowing the borrower to access the required loan amount even if no single lender is willing to fund the entire loan.

 

Eligibility Criteria for Faircent Personal Loan

To qualify for a Faircent Personal Loan, the borrower must meet the following eligibility criteria:

1. Indian Citizen: The applicant must be a citizen of India.
2. Income Requirements: The borrower must have a minimum annual gross income of ₹2 lakh.
3. Age Limit: The applicant must be within the age range of 21 years to 58 years.
4. Credit Score: The borrower should ideally have a good credit score (generally 650 or higher) to improve the chances of loan approval.
5. Employment Status: Applicants can either be salaried professionals or self-employed individuals with stable income sources.

These are the general eligibility criteria, but Faircent may request additional documentation or verification based on the applicant's profile.

Fees and Charges of Faircent Personal Loan

Faircent Personal Loan comes with a set of fees and charges that borrowers must be aware of:

1. Loan Amount:
• Up to ₹5 lakh for personal use.
• Up to ₹10 lakh for business use.
2. Interest Rates:
• 9.99% to 12% per annum.
3. Platform Registration Fee:
• A non-refundable fee of ₹500 for registration.
4. Loan Processing Fee:
• Ranges from 6% to 8% of the loan amount.
5. EMI Non-Payment Penal Interest:
• 18% per annum on overdue payments.
6. EMI Overdue Charges:
• A fee of ₹500 for each missed payment.
7. Pre-closure Charges:
• A fee of ₹500 applies if the loan is paid off early, but this is only applicable after the borrower has paid at least three EMIs.

Types of Faircent Personal Loans

Faircent offers different types of personal loans tailored to meet the needs of various borrowers. These include:

1. Personal Loan for Salaried Individuals: Aimed at individuals with regular income from employment. These loans are used for personal expenses such as home renovations, vacations, or emergency medical costs.
2. Business Loan: Intended for entrepreneurs or small business owners, this loan helps in business expansion, debt consolidation, or other business-related expenses.
3. Debt Consolidation Loan: A personal loan offered to borrowers who wish to consolidate their existing debts into a single loan, thereby simplifying repayment.
4. Wedding Loan: A loan designed to finance weddings, including expenses related to venue booking, catering, jewelry, and other wedding costs.
5. Home Improvement Loan: A loan specifically designed for improving, repairing, or renovating your home.

EMI Calculation of Faircent Personal Loan

Calculating the EMI for Faircent Personal Loan depends on the loan amount, interest rate, and tenure. The EMI formula is:

EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1+r)^n}{(1+r)^n-1}EMI=(1+r)n−1P×r×(1+r)n​

Where:

• P is the loan amount,
• r is the monthly interest rate (annual rate divided by 12),
• n is the loan tenure in months.

For example, for a loan of ₹1 lakh at 12% annual interest rate for 12 months:

• P = 100,000
• r = 12%/12 = 1% (monthly interest rate)
• n = 12 months

Using the formula, you can calculate the EMI. You can also use online EMI calculators provided by Faircent to determine the exact EMI.

Why Choose Faircent Personal Loan?

There are several reasons to choose Faircent Personal Loan:

1. Quick Loan Processing: With online processing, approval is faster, and disbursal happens within 2 days.
2. Competitive Interest Rates: Starting at 9.99%, the rates are quite attractive, especially for borrowers with a good credit score.
3. No Collateral Required: The loans are unsecured, so you don’t need to pledge any assets.
4. Flexible Repayment Terms: With loan tenures ranging from 6 to 36 months, borrowers can choose a repayment schedule that fits their financial situation.
5. Multiple Lender Funding: Loans are funded by multiple lenders, ensuring diverse funding sources and quicker disbursal.

Frequently Asked Questions (FAQs)

1. How much money can I borrow from Faircent?

• You can borrow up to ₹5 lakh for personal purposes and up to ₹10 lakh for business-related purposes.

2. Will my loan be funded by one lender or multiple lenders?

• Your loan will be funded by multiple lenders, as no single lender can cover the entire loan amount.

3. Do I need to go through a physical verification process?

• Yes, physical verification of your residence and office may be conducted after an appointment is scheduled.

4. Can I pay off the loan early?

• Yes, you can prepay the loan after three months. A ₹500 fee will apply if you choose to prepay before the three-month mark.