Financial PlanningFixed Income SecuritiesOthers : P2P online lending platform

In this article, we explore i2ifunding, a P2P online lending platform through which you can give loans to individual borrowers just like what banks / NBFCs do.

Lack of investment options

If you are looking to invest Rs. 50,000 – Rs. 1,00,000 (spread over the next few months), let us explore the investment options that you have:

  • Bank fixed deposits: Today a 1 year fixed deposit is paying 6.5 – 7.5% interest rate. After paying income tax on interest, the net return is 5.2 – 6.0% only (if your income tax slab is 20%) and even lower net return of 4.55 – 5.25% (if your income tax slab is 30%)
  • Gold: The prices are stuck in a range of Rs. 30,000 – 33,000 / 10 grams since a couple of years offering limited scope for appreciation.
  • Equities: With equity markets at new highs, in the short term, the risk – reward ratio is not very favourable at this point of time. If you are a long term investor and have a moderate to high risk profile and wish to invest through a monthly SIP for a minimum of 5 years, then you should go for equity mutual funds.
  • Real estate: Since your investment is Rs. 50,000 – Rs. 1,00,000, real estate is out of question due to the high investment amount required. Even if your investment amount is much higher, the returns from real estate will be limited due to already high prices and sluggish demand, thus capping price appreciation.

So what are the other investment options that you can explore? Just like you, there are many other investors with a similar investment amount (Rs. 50,000 – Rs. 1,00,000) who are looking for an answer to the same question. In this article, we make an attempt to answer the question by exploring Peer-to-Peer (P2P) lending websites.

Investment opportunity provided by Peer-to-Peer lending website/s

Peer-to-Peer (P2P) lending websites like i2ifunding act as intermediaries between loan borrowers and investors (loan financiers). Through these platforms, individuals (investors) like you, who have surplus money and are looking for investment avenues, can give loans to borrowers (just like banks and NBFCs). Individuals (investors) can earn good returns in the form of monthly EMIs. So as an investor you can explore this investment option and earn high interest up to 36% p.a.

Legality of the business: In August 2017, the Reserve Bank of India (RBI), through a notification, has classified P2P lending platforms under Non-Banking Finance Company (NBFC) category. On 4th October 2017, the RBI issued regulations for Peer to Peer Lending Platforms. RBI regulates all P2P lending platforms. So this is a legal business allowed by the RBI and the Government.

Sounds interesting? Let us see how to proceed.

Why i2i funding?
While there are quite a few P2P lending platforms that have emerged over the last couple of years, let us understand what the benefits are for you as an investor for investing through i2ifunding.
1) High returns: By investing through i2ifunding, you can give loans to various borrowers and earn high returns (interest) up to 36%.
2) High quality loan projects: The i2i team does the credit risk assessment of loan proposals received using its i2i proprietary Credit Score Model. They assess the borrower on 40+ parameters such as credit history, education, job stability, income details and other behavioural patterns. This way they ensure that only high quality loan borrowers are brought forward to investors like you for funding consideration.
3) Easy and transparent process: The registration and KYC process is online, quick and hassle free. You can choose the borrower / loan that you wish to fund with a minimum investment of as low as Rs. 5,000. Sounds interesting? Let us go through the investment process.

Investment process

P2P online lending platform

    • You can create your investment account and complete the KYC process online in a matter of few minutes. At the time of registration, you need to enter your personal details along with your PAN number. You will need to upload a soft copy of your photograph. Click to register (or if registering directly then enter our referral id: 2668).
    • Browse through the borrower loan details like credit score, interest rate, and risk category.
    • Go through additional details of the borrower that interests you. Borrower details mentioned include: purpose of the loan, income of the borrower, EMI to income ratio, average monthly bank account balance (for last 6 months), income from other sources, details of other existing loans, documents verified and other details. All these details help you assess the borrower’s credentials and decide whether you wish to fund the borrower.
    • After going through the details, you may input the amount (minimum Rs. 5,000 and in multiples of Rs. 5,000) you wish to fund and wait for other investors to fund the remaining loan amount and complete the funding process
    • As the next step, the physical verification of the borrower is completed. The legal agreement is signed with the borrower and a digital copy is shared with all lender / investors.
    • As the next step, you then need to transfer the funds to the borrower. EMIs are deposited directly in your bank account from next month.
    • You have to repeat the same process for multiple loans. This way, you will build a diversified high return loan portfolio by investing in multiple loans. You can now see your investment returns grow month-after-month.
    • The “My Account” section provides you all the details of your portfolio at any point in time.

Risks involved
All investments carry risks, the difference being, some carry low risk and some carry high risks. Like any loans given by banks or NBFCs, loans given on the i2ifunding platform also carry the risk of default by the borrower.
Using the i2i’s proprietary Credit Score Model, each loan, based on the borrower’s credit risk, is assigned an i2i Risk Category. The risk category ranges from A – F. Risk category A being the strongest / safest category to F being the weakest / riskiest. Based on the risk category of the loan, you may decide whether you wish to fund the borrower or not.

If you wish to take a loan as a borrower from i2i funding platform, then you can refer the following article.

Now let us come back to the investment query with which we started this article, if you have some surplus funds and are not finding investment options as per your requirement, then i2ifunding is the place to head to. With i2ifunding you can start investing with an investment amount as low as Rs. 5,000, get an opportunity to earn interest up to 36% and earn regular monthly income in the form of an EMI. What more could you, as an investor, have asked for?

I have been investing through this platform since September 2016. My experience so far is good and I am happy with it. Click to register as an investor (or if registering directly then enter our referral id: 2668)

Referral incentive disclaimer: If you decide to join i2ifunding, then I request that you join by clicking one of the links in the above article. I make a small referral incentive on all the people who join through me. This allows me to spend time with you to handhold and solve your doubts / queries till you become comfortable with this investment platform. The referral incentive also allows me to spend time on the internet to research on similar opportunities that can give benefits to customers like you.

In case of any queries please comment in the section below or write to us at

13 thoughts on “ : P2P online lending platform

    1. Hello Deepak,
      If the borrower does not pay, then i2i funding will pay 0% to 100% of the outstanding principal, depending on the % of principal protection chosen by the lender / investor. The lender / investor has the option to choose up to 100% principal protection against borrower default. The amount will be paid from the principal protection reserve.

  1. Every one wants 100 percent protection but then ROI is less than Rs 1 which is not profitable. Plz tell if we take 0 protection then what will be your role.

    1. Hello Taranjit,
      Can you let me know how did you arrive at the ROI of less than Rs. 1?
      Also, I have no role to play whether you take 100% or 0% protection as I am not a company representative. I have myself availed this investment opportunity and benefited from it and hence I am sharing it with others 🙂

    1. In 1 loan, an individual cannot invest more than 20% of the loan amount. So, every loan will have a minimum of 5 investors. For example, if the loan amount is of Rs. 1 lakh, then an individual cannot invest more than Rs. 20,000 in that loan.
      You can invest in multiple loans at the same time.
      The minimum investment required to be made in one loan is Rs. 5000

    1. Hello Rahul,
      Yes, you are correct in saying that at the moment all the borrowers are fully funded. You need to check the borrower section couple of times everyday to see which borrowers are available for funding and out of those which ones would you like to fund. I would suggest you check the borrower section once in the morning and once in the evening. It will not take more than 5 minutes of your time. If you wait for i2ifunding email for funding borrowers, then by the time the email comes, most of the borrowers are already 100% funded and you will lose out on the opportunity to invest. So it is a good idea to be proactive and visit the borrower page 2 times in a day.

  2. Generally if you lend on a regular basis or rather if you are in the business of money lending then I believe you need to have a license to operate as a money lender. As an individual who may lend regularly through such online lending platforms, do you then not need to have such a license?

    1. Hi Anil,
      In 2017, when the Reserve Bank of India (RBI) released guidelines for P2P lending companies, they specified guidelines for borrowers as well as lenders. The guidelines for lenders did not include any licence requirement. Based on this, it seems atleast for P2P lenders, there is no license requirement from RBI side. With regards to other forms of money lending like private money lending, I cannot comment.
      I have invested as a lender though P2P companies like Faircent and i2i funding. Both the companies did not have a license requirement as part of lender eligibility criteria.

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