Faircent – P 2 P Lending
In today’s environment where investments seldom generate expected returns and most of our savings placed with institutions like banks go into paying service charges to them, Faircent offers a unique opportunity to lend money directly to pre-verified borrowers and earn extra income on idle money.
The Faircent model provides better rates of interest than the traditional model because it removes the intermediaries and connects the lenders directly to the end users – the borrowers. Traditionally, banks and other financial institutions collect money (through savings accounts or deposits like fixed or recurring) at low interest rates (say 4-7%) and lend it to borrowers at much higher rates (12-18%). This margin goes into paying for the high costs they incur like thousands of employees to pay salaries to and hundreds of swanky branches to maintain and so on. Faircent brings borrowers and lenders directly in touch with each other, removes intermediary cost and enables borrowers to access faster and cheaper credit and enable lenders to make greater returns on funds lying idle in bank deposits.