LoanX is a regulated, rated, and listed investment option that enables investors to tap into a diversified pool of loans to various individuals, businesses or other entities and receive regular returns. These loans are originated and serviced by an RBI regulated NBFC
This investment instrument is enabled through a process called ‘Securitization’. CRISIL estimates that NBFCs raised 1.8 lakh crore (1 followed by 12 zeros!) via securitisation in FY'23. All of these investments were made by just 100 investors consisting largely of foreign, private, and public sector banks!
Partner Curation and Due Diligence
Corporate Profile of Originator
Assessment of originator’s track record, founders/promoters, management team (CXOs), any prior or ongoing litigation. Also undertake reference checks with key investors or shareholders, industry peers and competitors, and key customers
Underlying Loans Quality
Ensure that underlying assets in these opportunities entail a pool of loan receivables meeting certain pre-determined criteria. Analysis of the pool to ensure that it complies with RBI and SEBI regulations and meets identified credit quality thresholds
Security Package
Ensure that the security package (comprising cash collateral, etc.) is commercially reasonable based on the risk and reward of the opportunity and market standards. Each opportunity will be rated by a tier-1 credit rating agency that conducts a thorough c
How to Invest?
- This instrument gives investors the opportunity to invest in a diversified pool of loans and generate fixed non-market-linked returns of up to 13% pre-tax IRR
- It is listed on BSE/ NSE and is issued in accordance with established RBI and SEBI frameworks
- It is held in investors’ demat accounts and returns are received directly in their bank accounts
- It is a credit-rated fixed-income instrument providing increased transparency and easier understanding of risk
- It is monitored by an independent SEBI registered trustee. Additionally, to cover any delay or shortfall in payments, a security cover which includes over-collateralization and cash collateral has been built-in
For your knowledge
To help you
Frequently Asked Questions
Is LoanX tradable?
How is LoanX secured?
What is the tax applicable on my return?
Is it compulsory to do KYC for LoanX investment?
Yes, RBI and SEBI have mandated KYC requirements for the purchase of the PTCs to prevent money laundering activities
Is it okay if I transfer the funds from someone else’s account?
No. It is mandated that the funds must be transferred from the bank account held in the name of the investor
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