Only P2P Platform to provide advertised returns during the Covid-19 Period, Instant Liquidity
- Consistent Returns with Low Risk
- No account Opening Fees
- Instant Liquidity
- Borrowers might delay payments
- Interest is lower than other Alternative Investment Platforms
Liquiloans Overview
Liquiloans is a peer-to-peer lending platform that streamlines and speeds up the entire process for a hassle-free financing solution by matching borrowers and lenders and, in the process, eliminating the margin which is charged by traditional banks and NBFCs, making borrowing cheaper and investing a more lucrative opportunity..
The platform automatically splits the invested money into small chunks and spreads across multiple borrower for diversification
Is Liquiloans Safe?
LiquiLoans has created a product that is considerably safer than existing P2P platforms available on the market. Here are some features of Liquiloans that make them safe.
- Liquiloans is an RBI Regulated & Monitored Product. Funds flow only through an Escrow Account (PSU Bank) & Managed by a Bank Sponsored Trustee and are the only platform that has been evaluated by rating agencies (ICRA and Crisil)
- Funds invested are spread across an average of 150–200+ borrowers, making the exposure to every borrower less than 0.5%.
- Liquiloans provide 100% Alignment meaning it earns fees only when the investor receives full principal and interest, i.e., Platform fee earning shall be zero in scenarios where the investor’s portfolio return is less than the expected return. Thus, maintaining complete alignment with the investors and making sure that they find top borrowers, aid investors in diversifying their portfolios, and collect all EMIs from each borrower.
How to Invest in Liquiloans
- Create an account and submit KYC and bank account details.
- Sign the Investor agreement and begin an investment starting at just Rs. 50,000.
- You can monitor your portfolio performance on the dashboard.
Liquiloans Fees
LiquiLoans does not charge any upfront or transaction fees to the investor or the lender. The platform completely aligns the interests of the lender because the platform only receives its total loan service fee if the lender achieves the yield they have specified.
Liquiloans Team
LiquiLoans was founded by Achal Mittal and Gautam Adukia who previously co-founded a successful rental platform, “Rentomojo.” The company is funded by Matrix Partners, who have invested in some of the marquee companies like Ola Cabs, Practo, Quikr, and Cloud Nine. Other investors include the promoters of Cred and Famycare
Frequently Asked Questions
What is LiquiLoans’s latest funding round
LiquiLoans’s latest funding round was by CRED.
- How much did LiquiLoans raise?
LiquiLoans raised a total of $10 M.
- Who are the investors of LiquiLoans?
The Company received its seed funding in April 2018 from Matrix Partners (one of the largest VCs in India), which has invested in marquee companies such as OlaCabs, Treebo Hotels, ItzCash, Quikr, Cloud Nine etc. Matrix Partners & Renowned Angel Investors (Mr. Kunal Shah – CEO of CRED, Mr. Satya Bansal – Ex. CEO Barclays Wealth India, Mr. Abhishek Dalmia – CEO of Renaissance Group, Mr. Ashutosh Taparia – Ex. Owner of Famy Care) etc.
- How are borrowers checked on the platform?
Liquiloans platform classifies borrowers into A, B, and C categories depending on their past credit history and other parameters used for due diligence and underwriting of borrowers. However, currently, the platform only lists borrowers classified as the “A” category, i.e., prime quality borrowers.
Borrowers are checked through a proprietary algorithm that checks various parameters, some of which include the following:
- The borrower’s credit profile, CIBIL/Credit Bureau Score and repayment track record
- Social details like Location, Age, Current Job Designation etc.
- Banking History
- End use of the loan
- Past performance of similar loans based on their end use, the referrer of the loan, etc.
- What happens in case a borrower defaults?
- LiquiLoans minimises the risk of a borrower defaulting by having the best-in-class risk management and borrower sourcing mechanisms. If the lender has opted for the auto-invest feature, it is ensured that the lender’s investment is diversified across a number of borrowers, hence protecting the lender from the concentration risk of exposing itself to only a few borrowers.
- In the event of a default, LiquiLoans uses a combination of soft and hard collections to collect missed payments on the lender’s behalf.
- LiquiLoans assists and facilitates the collection through its in-house collection mechanism and may also send a legal notice on behalf of the lender to the borrower. On a case-to-case basis, LiquiLoans has already signed up with collection agencies to recover money from overdue borrowers, who then, on the investor’s behalf, will try and reach out to the borrower and get back the remaining funds
Personal Experience of Yieldkart Team- Investing with Liquiloans
As with most of the investment platforms listed to Yieldkart, we make it a point to invest in these platforms as an investor. We have been investing with Liquiloans since its inception. Till date, for 100% of investments, payments have been on time without delay.
To get a detailed Analysis of hundreds of investors experience read here – Portfolio Analysis
Conclusion/Final Review
LiquiLoans is a great peer-to-peer lending platform to park your short-term capital funds. Investments starting from only ₹50000, Liquiloans has a trusted escrow mechanism, is RBI-regulated NBFC and is funded by Matrix Partners. It is one of the few P2P platform which has delivered consistent returns with low risks.
