LoanX is a SEBI-regulated and rated investment opportunity allowing investors to invest in a diversified pool of loans with fixed returns. These loans are issued by RBI-regulated NBFCs to MSMEs, businesses, and individuals. The NBFCs, typically 10-15 years old with strong underwriting and risk management processes, must adhere to RBI criteria for loan selection.
Purpose: Lending money to NBFCs by investing in loan pools that pay fixed returns through interest and principal payments.
Payments: LoanX has a maturity date, with monthly or quarterly interest and principal payments at a predetermined rate.
Safety: LoanX opportunities are secured by cash collateral, overall collateralization, and excess interest spread, making them relatively safer than P2P lending.
Credit Ratings: Independent rating agencies like CRISIL, ICRA, CARE, etc. assess financial health of the NBFC and quality of the pool to assign credit ratings, with higher ratings indicating lower risk.
Yes, RBI and SEBI mandate KYC requirements for purchasing PTCs to prevent money laundering activities.
No, funds must be transferred from a bank account held in the name of the investor to comply with regulatory requirements.