Formal banking is a long way from establishing its roots firmly in the rural India. The couple of bank branches operating have created a monopoly, making it difficult for rural borrowers to obtain loans. Finally, succumbing to unregulated lending where interest rates are exorbitant and collaterals are unreasonable. These rates could be as high as 4% per-month, which makes it 48 percent annually.
P2P lending platform emerges as a solution to these financial barriers. Rural borrowers can now avail quick and hassle free loans through a completely digitalized platform at PaisaDukan. The interest rates are reasonable taking in account the credit worthiness of the borrower, and further collateral is not required. The recent ban on Unregulated Deposit Schemes (UDS) would definitely shift the demand towards P2P lending. The main advantages of P2P lending over the existing popular method of group funding is that borrowers can avail individual loans and have the option of prepayment. The P2P lending market has a huge scope in the credit deficit rural society.
PaisaDukan envisions to be the best marketplace in the financial lending sector by not only limiting our reach to urban borrowers but also proving last mile credit to our rural borrowers who have long been ignored by the conventional banking sectors. Our goal is to have financially inclusive India. With this goal in mind, PaisaDukan has introduced a loan product for the rural sector under the name “Grameen Loans” (a first of its kind in the P2P lending market), to fill in the gaps in formal financial lending. We intend to ensure that every individual has the opportunity to become a part of this digital lending revolutions and assist them in financial inclusion. Access to quick credit at reasonable interest rates and a digitalized registration process enables borrowers to submit their loan application within minutes and get quick disbursement of loans, discarding the inconvenience of lengthy physical procedures. Through P2P lending, we aim to reach out to borrowers unserved by banks while creating value for our investors.
We at PaisaDukan have always aimed to provide the best for our customers and are willing to go an extra mile to make sure our borrowers have a complete fruitful experience of P2P lending.
As a rural borrower we had taken additional steps to ensure our borrowers are able to obtain the maximum benefits at minimum costs.
As a Grameen borrower at PaisaDukan you will receive the following advantages -
- Quick & hassle free service
- Doorstep physical verification
- Complete digital documentation
- Calculated and reasonable interest Rate
- Flexible EMI repayment options
By introducing P2P lending in rural area we are trying to fill in the financial gaps created by the existing institutions in financial lending such as the supposedly popular system of Joint Lending Group.
By registering with PaisaDuakn and becoming a part of the P2P revolutions, we ensure
- No hassle of group formation.
- No liability of group member’s default.
- Pre-payment facility of loan available.
- Privacy when availing loans.
Additional benefits when availing loans for the second time.
Registration Fees- We Charge a small one-time fee for registering with us.
- ₹ 300 inclusive of GST for Grameen Loans upto amount of Rs 49,999.
- ₹ 500 inclusive of GST for Grameen Loans on amount of Rs 50,000 and above.
Based on you requirement for loan amount, we charge a small fee for processing your loan application.
|Serial Number||Particulars ( In Rupees )||Percentage Processing Fees|
|1.||1,000 - 25,000||3%|
|2.||25,001 - 50,000||4%|
- Documentation Required:
- Aadhar card of applicant
- PAN Card
- Residence Proof –
- Owned: Passport, Driving Licence, Voter ID, Post-paid / Landline bill, Utility Bill (Electricity/Water/Gas)
- Rented: Rent Agreement
- Salary Slip of latest 3 Month / Salary Certificate / Cash Voucher
- Bank E- Statement (latest 6months)
- ITR latest (2 years) OR Form 16 (1 year) (any)
- Employee Id
- Offer letter or Joining letter if Tenure of Employment is less than 9 Months
- Income Tax Returns OR Balance Sheet of last 3 years
- Shop Licence or GST Certificates or Gumasta Licence
- P&L Statement or Computation of Income
PaisaDukan introduced P2P lending in rural with the aim of being the alternative to the existing banking system in rural areas. The pilot project which begun in the month of March 2019, in Madhubani, district of Bihar, has already shown great potential in less than 3 months.
The project started off with an average ticket size Rs 25,000 –Rs 50,000 and tenure between 6-12 months. We have received over 531 loan applications and have disbursed more than 200 lakhs in the 7-month period.Grameen Loan Dibursed
For lenders, rural has always been a huge market for good financial investment which has been untapped for long. Since decades whenever it came to banking services and credit facilities, Indian villages would always fall out of the contemporary banking system. This had given a chance to the existing system of money lenders to exploit the rural borrowers. For borrowers P2P is a perfect alternative and our pilot project has supported our claims.
Currently, majority of the loan applications are under repayment with a few still at auctions. Till date there has been no default in payment of EMI, making our NPA at zero with an average interest rate up to 18% . There is also a presence of a physical contact centre for assistance.
Further the chances of default in rural is comparatively lower compared to urban due to the fact that village is a closely-knitted community where borrowers are more concerned about their credibility, for such borrowers P2P lending is their best option. Unlike urban borrowers who may default and may abscond, a rural borrower has no place to go, therefore for him it is an utmost priority to pay backs his dues.
Number of Rural Loan Disbursed
Our growth projection state that by the month of October 2019, the monthly disbursement will cross over 60 Lakhs per month from a single village indicating that there is a huge scope in rural market. The results of these case study can be formed as a base for other P2P lending firms to expand their market to rural areas.