In the last blog, the product of FinancePeer was explained in detail. In this blog we shall explain the product taking an example so that it is clear. In this blog, we will be talking about short term loan and long term loan in terms of borrowers. In the next blog, short term loan and long term loans in terms of lenders will be explained. FinancePeer has 2 types of loans:
- Short term loan
- Long term loan
Let’s take an example :
Ajay wanted to gift a 24 karat necklace to his wife. He has saved some amount from his salary. He is saving it since a year and now he is in a position to buy a necklace. Yet somehow he is running short of Rs 8000. So while walking down the pathway, he read about FinancePeer on a hoarding advertisement. He immediately googled FinancePeer and got to know that he can borrow short term loan starting from Rs 1000 at a minimal EMI. He was not sure initially about FinancePeer. So he thought of consulting his friend, since his friend had once used FinancePeer’s platform as a borrower and as a lender as well. His friend suggested him to use FinancePeer since his experience was amazing. As a borrower – he got the loan in minutes, no manual documentation required, hassle free process and low EMIs. Financepeer also calculated his credit score based using 13,000 + data points. Even though he had a bad credit score, financepeer made sure that he got the money needed. As lender – He lended his money in financepeer. Basically he wanted to help the borrower in need, to directly give him money within no time. Another thing he knew about FinancePeer was that it gives good interest rates. Therefore, enjoying high interest rate was his another motive. After hearing his friend’s experience, Ajay made up his mind to go to FinancePeer.
Since he wanted to borrow Rs 8000, he was a bit worried, will he get the loan or not. But after researching, he found out about short term loan that the company offers. So after a lot of thinking and a bit of researching, he got connected with FinancePeer. Financepeer helped him get a credit score using AI technology. Since his credit score was low, he had to pay Rs 30 from the range – Rs 26 to Rs 31 per Rs 1000 per month. He was so happy and relaxed as he won’t feel embarrassed to ask money from his friends. He got the loan approved and got Rs 8000 instantly for a tenure of 6 months. He finally gifts his wife a gold necklace.
Long term loan:
Ajay is buying a new car. He has saved Rs 4 lac over years. He is still running short of 1.50 lac. Ajay thought of going down to a bank and get a loan. But at the back of his mind he knew that getting loan approved is a tedious process. Alot of documents needs to be submitted before you can get the loan approved and get the money in hand. So he decided so to FinancePeer. He had read about FinancePeer on Linked in. Therefore, he decided to go down to FinancePeer. It acts as platform between lenders and borrowers where they can exchange loans directly. FinancePeer hecks the credit score and gives the history to lenders. The lenders choose the appropriate borrowers and help them with money. Ajay went to FinancePeer and issued a borrowing request for Rs 1.5 lac. FinancePeer checked his credit score with the help of Artificial Intelligence and sent his request to potential lenders. One of the lender agreed to his request and the transaction took place. The tenure was 28 months from the range of 6-36 months and the EMI that the borrower had to pay is from 12% – 19% depending on his credit score. This is how Ajay got his money and he repaid it back as per the time frame given to him.