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ROI and IRR are complementary metrics and the main difference between the two is the time value of money. ROI gives you the total return of an investment but doesn’t take into consideration the time value of money. For example, INR 1,000 received today is more valuable than INR 1,000 received after 3 months. IRR calculations take into consideration when the INR 1,000 was received, while ROI does not.

IRR hence not only represents the amount of money earned but also how fast it was earned.

Only the monthly interest payout is expected to be taxed at the marginal tax rate of the individual investor; no tax should be payable on the principal repayment. Appreciation (if any) of the price of the SDI, in case of sale prior to the full tenure, is expected to be considered as capital gain and taxed accordingly. Please do not consider this as tax advice. We urge you to speak with your independent tax advisor.

Accrued interest is the amount of interest due on the SDI that has accumulated since the last time an interest payment was made. The interest has been earned by the existing holder, but because interest is only paid at set intervals the investor has not received the money yet. If the present holder sells his SDI, he should be entitled to get the interest until the date of the sale.

For example, assume you receive INR 1,000 as interest on the 30th of every month. On the 15th of the month, you decide to sell the SDI. Since you held the SDI for 15 days, an equivalent coupon amount, in this case INR 500 is earned by you but not yet received. Hence, when you sell the SDI, the INR 500 in accrued interest must be added to the sale price to fairly compensate you. 


The clean price is the price of a SDI not including any accrued interest. The clean price is typically calculated as the adjusted face value of the instrument closer to the nearest payout date, ceteris paribus. Dirty price is the price of a SDI that includes accrued interest between payout dates.

  • Yes, similar to Bonds, there could be 2 major factors due to which the prices fluctuate:
  • Interest rates: Price of fixed-income instruments is inversely related to the prevailing interest rates.  With an increase in interest rates, the buyer expects more returns and accordingly, the price of the instruments goes down
  • Credit risk: SDIs are rated by independent credit rating agencies such as CRISIL, which rank the risk for default. If a credit rating agency lowers or raises a particular SDI’s rating to reflect a change in risk, the returns must increase or decrease respectively to compensate the buyer.
  • For example, the typical symbols and related expectations are discussed below:
  • A1 - Instruments with this rating are considered to have a very strong degree of safety regarding the timely payment of financial obligations. Such instruments carry the lowest credit risk.
  • A2 - Instruments with this rating are considered to have a strong degree of safety regarding the timely payment of financial obligations. Such instruments carry low credit risk.
  • A3 - Instruments with this rating are considered to have a moderate degree of safety regarding the timely payment of financial obligations. Such instruments carry higher credit risk as compared to instruments rated in the two higher categories.
  • A4 - Instruments with this rating are considered to have a minimal degree of safety regarding the timely payment of financial obligations. Such instruments carry very high credit risk and are susceptible to default.
  • D - Instruments with this rating are in default or are expected to be in default on maturity.
  • Modifier {"+" (plus)} can be used with the rating symbols for the categories A1 to A4. The modifiers reflect the comparative standing within the category.

No. It is mandated by SEBI to transfer funds from the bank account in the name of the applicant.

LoanX is an investment opportunity structured in the form of a Securitized Debt Instrument (SDI), which is a fixed-income instrument issued in accordance with an RBI and SEBI framework. Grip through LoanX offers SDIs secured by a granular pool of loans such as MSME business loans, microfinance loans, joint liability group loans, etc.; these SDIs are listed and rated by a credit rating agency. Investors/Subscribers are issued with Pass-through Certificates (PTCs) by a SEBI registered trust; which gives the rights to the investors to receive fixed monthly payouts in the form of interest and/or principal. 

LoanX is in the form of SDI and is a tradable instrument held in dematerialised form, i.e., it offers a similar experience to buying, holding, and selling a bond. However, ability to find a buyer is not guaranteed by Grip and the investor could expect to hold the instruments until maturity

SDI was introduced by SEBI in 2008 under the SEBI (Issue and Listing of Securitised Debt Instruments and Security Receipts) Regulations. The first asset leasing backed SDI was listed on the National Stock Exchange (NSE) by Grip on 7 October 2022.  Since then, Grip has successfully completed INR 100 Cr in SDI transactions without any delay or default

LoanX (in SDI format) is an RBI and SEBI compliant, listed, and rated instrument, which is managed by an independent, SEBI-registered trustee. The returns in the LoanX originate from a granular pool of retail loans such as MSME business loans, microfinance loans, joint liability group loans, etc. The security package of LoanX generally consists of over-collateralization, cash collateral, and excess interest spread (EIS).

  • i)Over-collateralization refers to having loans worth INR (100+x) as collateral, against an investment of INR 100. So, if in an opportunity, over-collateralization is 10%, then it has loans worth INR 110 as collateral, against INR 100 investment.
  • ii)Cash collateral is in the form of an upfront fixed deposit by the originator
  • iii)EIS is the difference between the interest payable by the borrowers in the pool , and the interest payable to investors

The investment amount is the sum of the face value of each SDI (“Clean Price”) and accrued interest. 

Yes, RBI has mandated KYC requirements for the purchase of the Pass-through Certificates (PTCs) to prevent money laundering activities

LoanX (in SDIs format) are tradable instruments. This means that there is no lock-in on your investment. If you want to sell the instrument before maturity, you can do so in the secondary market at the market price (market price may vary from par-value)

In LoanX opportunities, the originator also acts as the servicer of the transactions. The primary responsibility of the servicer is to monitor, collect, and deposit the receivables under the transaction, to the collection and payout account of the trust on a monthly basis. In case the originator/servicer goes bankrupt, it will not have any impact on payouts to the investors, as all LoanX opportunities follow a structure of bankruptcy remoteness and in such a scenario, the trust would appoint a new servicer to service the assigned pool of loans.

Evaluation and filtering by the originator; the originator applies certain filtering criterias before extending a loan to any individual/group, like earnings analysis, credit bureau check, background verification, etc.

Internal evaluation by Grip, which involves; benchmarking of originator’s background and the management team with market standards; analysis of the originator's portfolio of loans to identify a pool that complies with RBI and SEBI regulations and has credit worthiness; and ensuring market standard risk-rewards are being incorporated in the transaction structure. Grip will, on a reasonable effort basis, attempt to carry out ongoing monitoring by obtaining necessary confirmations/ verifications from the originator. Typically, these pools are rated annually by credit rating agencies and downgrades in the pool quality entitle the invocation of early amortisation triggers. 

External evaluation by a tier-1 credit rating agency, which involves; overall assessment of the pool of loans; evaluation of deal structure; assessing the sufficiency of credit enhancement to cover any potential shortfalls; and scenario analysis based on default rates, prepayments, etc.


Originator as a lender generally builts in various kinds of recourse to respective borrowers. The recourse is legally established by suitable documents as per terms and conditions agreed with each borrower.

There is no recourse in LoanX opportunities beyond the credit enhancement available for the investors. Credit enhancement includes upfront cash collateral, over-collateralization, and excess interest spread (EIS); which will be available for investors and can be utilised in case of any shortfall in payments to investors.

Underlying loans with varying tenure and payment structure are pooled and securitized in the form of a debt instrument with a fixed tenure of say, 24 months. The loans with tenure of less than 24 months, will mature early while payments for the rest of the loans will continue until maturity of the instrument. The scheduled monthly cash flows to investors throughout the tenure of the instrument are based on the repayment schedule of the underlying pool of loan with different tenures but with a minimum balance tenure.