Issue April, 2017

Performance Overview

Faircent is a virtual market place, a platform which enables credit worthy borrowers lower their cost of loans and individual lenders lend directly to their peers and community thereby earning higher returns. Indian crowdfunding industry stands at approximately 300 crore. Although presently just a miniscule part of the global value (owing to limited awareness and knowledge), this industry has enormous growth potential in India both in terms of demand and supply as per data.

Investment Performance Analysis

Risk wise Investment Distribution

Days past Due as a % of Total Loans

Days past Due as a % of Total Loans

Regularity of repayments is used as a measure to gauge the performance of loans. Days past due parameter is used to access the overall loan performance.

Consistent and smooth repayment trend represents timely payment of EMIs by borrowers validating the efficient operation, collection and underwriting process in P2P to gauge borrower’s eligibility and credibility.

Days past Due as a % of Total Loans
Days past Due as a % of Total Loans

Significant increase in reinvestment ratio with an increase in timely repayment ratio due to increased trust amongst the lenders on our platform.

Key Trends

Based on the investment behavior of lenders on Faircent platform, some strongly validated trends are_

  • Top performing lenders (as defined by loss adjusted net annualized returns) on platform have higher average investments, longer investment portfolio period and invest in more number of borrowers which enabled them to earn more returns.
  • Top performing lenders on platform are maximizing their returns by diversifying investments across different credit score brackets, risk buckets etc.

Loan Performance

Borrower Profile

Bulk of the loans are for business funding and consolidation of loans taken from other sources including overdues on credit cards.

Volatility of returns is higher for lenders who have invested up to 1 Lakh, which reduces significantly as investment amount increases.

Reinvestment Benefits

Risk wise Investment Distribution

Increase in reinvestment has also lead to enhanced net annualized returns for the lenders owing to the engagement and diversification benefits.

Portfolio Analysis

Age of Borrowers

Gender and Marital Status

Employment Type

Risk Bucket

A significant growth in funding amount accompanied by a decline in average funding per borrower owing to portfolio diversification benefits to the lenders which enhances their rate of return on lending by reducing their credit risk exposure. This further lead to increase in number of borrowers funded.