P2P Platform IndiaMoneyMart Empowers Borrowers to Pay Off High Cost Credit Card Dues

MUMBAI, February 15, 2018 /PRNewswire/ --

One year ago, Chandra Prakash (*name changed), a young systems engineer working with an MNC, was battling with spiralling credit card dues and a poor credit score when he was expecting his first child. Every month he was paying minimum dues to credit card companies yet his outstanding credit card dues were not decreasing. Seeing his financial and personal life falling apart, he approached various banks and NBFCs to help him; however, his loan applications kept getting rejected at banks and NBFCs. That's when he approached Peer to Peer (P2P) Lending platform IndiaMoneyMart for a loan of 1 Lakh Rupees to pay off his credit card and take care of his wife's medical bills. Lenders at IndiaMoneyMart judged him for his intention and ability to pay, and lent him the money. Chandra Prakash is a happy person today, just one EMI away from closing this loan and looking to invest his future income to secure himself and his family from financial stress. 

Unpaid credit card dues are one of the costliest loans an individual can take and if one doesn't have the ability to clear these dues, the hefty interest rates charged accumulate, putting stress on the ability to pay back and also affects the borrowers' credit card score. So, what does one do when they do not have a great credit score of 750 or more but are in need of an unsecured loan? What's the best offer they can opt for to secure themselves? Is there a way they can come out of this debt trap?

To help manage the financial crisis, P2P lending platform allows the prospective borrower to list their loan requirement to its lenders. They offer collateral free personal loans up to INR 10 Lakh for a period of 3 years or less at affordable interest rates. Unlike credit cards, which charge exorbitant interest rates of up to 50% annually, the loans at such digital P2P platforms are quite affordable and empower the borrowers to avail loans at interest rates of their choice.

Mr. Mahendra Agrawal, Co-Founder and Director, IndiaMoneyMart (IMM), says, "All users registered on IMM are verified with proper KYC documentation and assessed on the platform's proprietary algorithms. A borrower is evaluated thoroughly on multiple criteria such as ability to repay, credit card usage, banking history and soft details such as family details, employment stability, social media behavior in addition to credit score to arrive at a holistic assessment for lenders to judge and lend money. These additional parameters enable a traditionally 'high-risk' borrower shift to 'medium-high risk' bucket. It helps the loan applicant to lower the cost of borrowing. Funding a loan is based upon a lender's expectation, criteria and discretion. Multiple lenders come together to fund a loan to a single borrower to diversify the risk."

Recent recognition of P2P lending platforms as NBFC-P2P by RBI's regulation has further instilled the confidence in the lending community to disburse loans and receive fixed monthly returns to earn 20-25% or more annually. P2P lending platforms bridge the demand and supply gap between investors with disposable funds and borrowers who need small amounts of loan for personal use but do not have access to affordable credit. Most of these P2P platforms are digital and therefore offer fast turnaround times in processing the loans as compared to conventional banks and NBFCs. The P2P lending platforms are playing a very important role by extending credit to a large section of individuals so far ignored by the traditional banks and thus bringing them into formal banking channels.

About IndiaMoneyMart

IndiaMoneyMart, (a FairVinimay Services Pvt. Ltd. initiative) is an easy, convenient and hassle free lending/borrowing marketplace where lenders and borrowers interact directly and strike a deal amongst themselves. Primarily, the lenders and borrowers interested in providing/seeking a loan, complete a simple application on IndiamoneyMart to lend or borrow as an individual or as a corporate member through this platform.

Media Contact:
Priyanka Singh
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Fair Vinimay Services Private Limited