Faircent.com, an online P2P lending platform, has announced the launch of a first-of-its-kind Portfolio What-if Analysis (PWA) tool on its platform.
The innovative tool will allow lenders to simulate different loan scenarios and understand how multi-loan portfolios in peer-to-peer lending operate through a What-if analysis. The launch simplifies and streamlines the online lending process for Faircent.com lenders, and also underlines the platform’s position as the dominant player in the P2P lending sector in India.
Lenders can create a test portfolio and specify the amount they would like to invest, along with the duration, interest rates, and tenure. The Portfolio Simulator will then perform advanced algorithm-based calculations based on the input, generating projected portfolio returns within seconds by following a standardized method using the concept of Net Annualized Return (NAR). A graph displays NAR variations over the tenure of the portfolio. Other results such as principal recovered, income or interest earned, principal and potential income lost are also displayed graphically. Lenders can also change the ‘As of Date’ for the portfolio to view estimated returns on the stipulated date.
Speaking on the launch, Shakti Goel, Chief Product and Technology Officer, Faircent.com, said, “This virtual tool will not only help existing lenders but also prospective lenders find out what kind of returns they can earn by investing in P2P lending. By simulating various loan scenarios though this virtual tool, prospective lenders can view a detailed summary of earnings from multi-loan portfolios and take the most informed lending decisions.”
Faircent.com provides a virtual marketplace for borrowers and lenders to interact directly, without having to go through traditional financial intermediaries like banks. Lenders can invest from Rs. 750/- onwards on the platform for a loan period ranging from 3–36 months and choose the borrower according to the loan period that suits them. By eliminating the high margins which banks and financial institutions charge on transactions, Faircent.com extends the benefits of reduced costs to borrowers in the form of lower interest rates and processing fees while lenders earn higher margins and returns on their investments.