Who can become a Borrower?
At loanbaba.com, anyone desirous of a loan, to fulfil any type of monetary requirement, can be a borrower.
With the exception of borrowing for illegal or prohibited purposes under Indian law, individuals can borrow for any purpose.
The borrower at loanbaba.com needs to be:
An Indian citizen
Over 25 years of age
Have a minimum annual income of Rs. 3 lakhs
Pan card holder
Aadhar card holder
Should submit all the documents required
Agree to adhere to loanbaba.com’s policies and borrower code of conduct
The list of documents a borrower needs to submit are:
2 passport sized Photographs
Last 3 month’s bank statements
Last month’s mobile bill/ landline bill
Last 3 month’s salary slip or last year’s Business/Personal ITR or Income Declaration
From Whom do borrowers borrow?
At loanbaba.com, borrowers have the option of choosing from multiple lenders. All the lenders at loanbaba.com undergo strict security checks. Lenders are made aware of the loanbaba.com’s P2P lending policy and only then allowed to register. The lenders bid lowest rate of interest to have the borrowers borrow from them. Thus, the borrowers have multiple options and can choose the one that best suits their requirements. The rate of interest ranges from 10% to 36% and the tenure ranges from 6 to 36 months.
The Process of Borrowing
A lender needs to provide a minimum of 20% of the loan amount required by the borrower. The loan is disbursed as soon as the borrowers and lenders sign the Official Loan Agreement, the borrowers have provided the lenders with Post Dated Cheques towards EMI, and the administrative charges are paid to loanbaba.com.
The Agreement between the borrower and lender
The lender and borrower sign a contract before they enter into any monetary transaction. It is a legally binding agreement. Each has to get a print-out of the same, which is generated online. This hard copy then needs to be signed, scanned and uploaded along with the other documents.
The borrower, also, also needs to provide the lender with Post Dated Cheques (PDCs) towards the EMI payment.
Fees and Charges
Loanbaba.com charges a listing fee of Rs. 1,000/- to the borrowers. This is due only at the time of registration. It is, currently, waived off.
The borrowers also need to pay loanbaba.com an Origination fee. Origination fee is levied when a borrower’s loan is approved. The fee is to be paid before the disbursal of the Loan.
Borrowers are required to give post-dated EMI cheques to the lenders at the time of signing the loan agreement. Once the cheques are submitted, the loan amount is disbursed to their account. These checks can take up to 2-3 days to process and for the lender to receive the EMI payment. Such delays do not attract penalties to borrowers.
In case a Borrower defaults in paying the EMI on time, there will be penal interest of Rs. 200 per day.
In case of consistent defaulting, loanbaba.com will send a legal notice to the borrower to restart the payments. In absence of any action from the borrower, our collection agency will follow-up with them to collect the missed payment.
Rate of Interest
Loanbaba.com P2P platform allows for the lenders and borrowers to interact, directly, with each other. The rate of interest is decided by loanbaba.com based on the creditworthiness of the borrower. According to loanbaba.com’s policy it will be a minimum of 10% and a maximum of 36%. If any borrower takes loans from different lenders, different rates of interest will be applicable in each case, depending on the agreement between the two peers.
Right to reject / approve borrowers
Loanbaba.com reserves the right to list and reject borrower profiles. Loanbaba.com adheres to a strict risk assessment process. Any profile that is deemed unfit due to the reasons mentioned below, will not be listed on loanbaba.com’s P2P platform. Any fees paid towards the listing will be refunded to the borrower.
Any of the documents provided by the borrower cannot be verified
If borrower provides false information
All the necessary documents are not provided
Credit assessment results in a negative report
Any profile that does not invite lenders for over 30 days
If underwriting on the profile is done but borrower cancels the loan application or stops responding to calls and emails for a continuous period of 7 days from date of registration.
If the borrower does not accept lending offers after being listed and going live
If the borrower wants to cancel loan application during the initiation of loan agreement