LiquiLoans is a Profitable RBI Regulated Peer-to-Peer (P2P) NBFC founded in 2018. LiquiLoans is one of the only P2P platforms in India which provides investors an access to India’s Prime Retail Borrowers i.e., Safest Borrowers.
LiquiLoans is founded by Mr. Gautam Adukia and Mr. Achal Mittal who have previously co-founded a successful rental platform Rentomojo (currently valued at over Rs. 950+ Crores). Together they have 25+ years of banking and start-up experience (Rentomojo, HSBC, ICICI, IIFL Wealth etc.)
LiquiLoans is funded by Matrix Partners, which has invested in various marquee companies like Ola Cabs, Practo, Quikr and Cloud Nine. Other Marquee Angel Investors include CEO of CRED and Barclays Wealth Management.
What is the role of LiquiLoans?
LiquiLoans as a platform plays a critical role by assessing each investor to safely lend funds to only multiple creditworthy retail borrowers who pass the stringent credit assessment, thereby enabling investor to earn a high return by taking minimum / nil risk.
Who are creditworthy retail borrowers?
In India, all retail borrower’s get a credit score from (CIBIL) Credit Information Bureau (India) Limited, Experian Credit Score, CRIF Mark Credit Information (Top credit Rating Agencies for Individuals) basis their repayment performance which showcases their ability and intent to repay multiple credit lines / loans.
These scores are in the range of 300 to 900 wherein prime borrowers i.e., borrowers having a high score (Average 700+) showcase that the borrower has been regularly repaying multiple credit lines/loans i.e., has demonstrated high ability & repayment intent. LiquiLoans sources such prime Borrowers, ensuring all investors on the platform get a diversified and safe exposure to such borrowers.
How are high quality Borrowers Sourced?
To source high quality prime retail borrowers LiquiLoans has tide up with,
- India’s largest service providers : 250+ Partners
- Services Offered:
- Up-skilling Education (Online MBA, Coding, Quant Trading, Data Science Courses, etc.)
- Discretionary Non-Fatal Healthcare (Hair & Skin Care, IVF and Stem Cell Procedures) and
- Home Decor (Upgradation of Self Owned Residential Property – Modular Kitchen etc.)
- Loans Offered: Largely No Cost EMI Loans
- Average Loan Value: Rs.50,000/- (Maximum up to Rs.10 Lakhs)
- Average Loan Tenure: Less than 12 Months (Maximum up to 36 Months)
- Revenue Model: Earnings via upfront discount (Subvention) offered by service providers for all approved customers.
How are the borrowers evaluated?
LiquiLoans sources only prime retail borrowers who are not credit hungry i.e., opt for a No Cost EMI Consumer Loan solely as a payment flexibility for their service being consumed from one of LiquiLoans’ Vendor Partners. Nearly 100+ data points are checked before approving the loan.
How does LiquiLoans assist an investor to recover their money in case of a delay / default?
All borrowers sourced by LiquiLoans mandatorily sign an auto-debit mandate before availing the No Cost EMI Loan, making it easy to collect EMIs on time. This ensures automated recovery on each due date as the borrower’s bank account is auto-debited and the EMI gets transferred directly to the Escrow bank account with IDBI Bank. To ensure minimal delay/defaults, LiquiLoans has multiple internal & external safeguards.
Why is LiquiLoans safe?
High Margin of safety:
- Investors have approximately 13% Plus safety margin i.e., unless the NPAs increase by approximately 13% the investor shall continue to earn back their full capital & indicate return.
- Currently the gross NPAs (Loan Defaults) are only around 0.64% (highest recorded was just 1.63% in peak covid in October 2020.
- Since inception, 100% of investors have made full return with LiquiLoans.
- Investments are spread across 200-300 plus prime retail borrowers.
- Exposure to single borrower is less than 0.50%
- High diversification amongst prime borrowers reduces concentration risk.
- LiquiLoans platform earns only after the investor.
Investment plans
- Liquid Plan with 8% XIRR, Invest and withdraw any time, best corpus for emergencies, more interest than savings bank account.
- Short duration plans ranging from 3 Months, 6 Months, 12 Months , 12 Months, 24 Months & 36 Months, Interest ranges from 8.6% XIRR to 9.35% XIRR
- Flexi Lock-in Plans 12 Months, 24 Months & 36 Months where one gets benefit of earning higher returns with the option to withdraw any time. One can park money for use during unplanned expenses. Interest approximately 9% XIRR.
- There is option of smart SIP with minimum Rs.5,000/- Investment per month with 8% XIRR and one can withdraw anytime.
Interest Pay-out Plans
- Monthly Interest Pay-out
- Cumulative Interest Pay-out (Growth)
How much can one invest?
Minimum Investment amount is Rs.10,000/- and Maximum Investment amount is Rs.50,00,000/-
Who can Invest?
Individuals (18 years older or above), Hindu Undivided Family (HUF), Corporate (Incorporated under Indian Companies Act or RBI Listed Finance Companies), Partnership Firm, Limited Liability Partnership( LLP), Body of Individuals, Society, Artificial Body. Even an NRI can invest.