Most people are aware of how the traditional lending system works - there is a lender, a middleman (the bank) and a borrower. Generally, banks lend your money and keep a percentage of the profits for themselves.

This eats into the profits that a lender can usually make and it also drives up the interest rate for the borrower. But P2P lending with Faircent solves this problem in a simple way.

P2P lending commenced in India in 2012 and is forecasted to be a $5 billion industry by 2023. Cube Wealth helps you access P2P lending with Faircent, India’s first RBI registered Peer to Peer Lending platform.

Update: No More Hard Lock-Ins!

In case of an emergency, you can withdraw your investment in Faircent before the lock-in period ends (only on Cube). Here are the returns if there is a pre-mature withdrawal.

Plan Withdrawal Scenarios ROI Premature ROI
3M 1 to 3M 10% 7.25%
1 to 3M 11% 7.25%
4M to 6M 11% 9.00%
1 to 3M 12% 7.25%
4M to 6M 12% 9.00%
6M to 12M 12% 10.00%

What Is P2P Lending With Faircent?

P2P lending is short for Peer-to-Peer lending. Simply put - you become the bank. With P2P, you lend directly to borrowers, removing the middleman (the bank).

However, you will lend using a specialist platform, Faircent, that uses technology to make this process safe and efficient instead of having to do all of the administration yourself.

These are short term loans to top end borrowers with an average CIBIL Score of 768.

Who Is This Suitable For?

P2P lending is generally used to diversify the medium and high-risk components of an investment portfolio for short term returns over 1-3 years. It’s also good for boosting monthly cash flow.

Pros Of P2P Lending By Faircent

  1. No upfront fees
    There is no initial fee to become a lender with Faircent.
  2. Better Returns Than FDs
    P2P with Faircent can produce returns of up to 12% which is better than an average FD. 

  3. Aligned Interests
    Faircent (Cube’s P2P advisor) only earns when you earn your first monthly EMI payments from borrowers.

  4. Risk-Based Investment options
    You can choose to lend to borrowers that fit your risk profile.

  5. Thorough Verification
    All borrowers on Faircent are thoroughly screened and vetted to ensure that you lend only to creditworthy individuals.

    Read this blog to know RBI guidelines that ensure safety in P2P lending.

Cons Of P2P Lending By Faircent

  1. Low Liquidity
    You can’t withdraw your investment in one lump sum because your investment will be allocated to a loan for a period of 12 months.
  2. Default Risk
    A buyer could default and if recovery collection were to be unsuccessful, you could lose part or all of your initial investment for that particular loan.

P2P Lending With Faircent At A Glance

Average Return





12 Months

Minimum investment


Borrower loan durations

Up to 12 Months

Investment duration

12 Months

Maximum investment

Rs. 10 lakh per pan (Up to 50 Lakh upon furnishing a Net Worth Certificate)


Moderate Risk; Non-market linked

How Does P2P Lending With Faircent Work?

Faircent enables lending and borrowing to suitably vetted parties without having to go through a traditional financial intermediary like a bank. As an investor, your investment is pooled with other investors then allocated to multiple borrowers to minimise risk.

For example, you may loan to 30-60 borrowers for an Rs. 1,00,000 investment. Borrowers are creditworthy and assigned a risk profile following Faircent assessment. In fact not more than Rs. 3000 is lent to any one borrower.

All investors (lenders) and borrowers must be KYC’d to meet compliance requirements. Faircent has a strict selection criterion for vetting borrowers that looks at their personal, professional and financial details and authenticates them.

As Faircent approves a borrower they assign a risk rating and loan interest rate. They then match borrowers to lenders that have selected that borrower risk category.

A contract is created and the loan is dispersed. Borrowers make periodic payments on both the principal and the loan as an EMI payment.

Faircent also engages a professional collections agency process to assist in recovering loans where a borrower has defaulted. Based on risk class, the default rate is less than 2% for a product of this kind.

Investor funds are moved from their bank account to an escrow account and held until they are dispersed to borrowers. Repayments are also received in the escrow account by the borrower EMIs.

About Cube’s P2P Lending Partner Faircent

Faircent was founded in 2013 and named in the prestigious ‘Super Start-Ups 2017’ list by Superbrands. Faircent was the first to be certified by the RBI as an NBFC- P2P. Faircent has over 1,50,000 lenders and disbursed over INR 700 crore as loans to borrowers.

Important Facts About P2P Lending With Faircent

  1. Borrower Profile On Faircent
    - Average Credit Score: 700
    - Must have at least one existing loan (home loan, personal loan, etc)
    - No prior history of loan default
    -No delay in EMI payments
  2. System-level Information
    - Diversification across different types of loans
    - Distribution across borrower spectrum

  3. Institutional Risk-level Information
    - First Loan Default Guarantee (FLDG) for group loans
    - Legal recovery process (0-90 days)
    - Legal cases after 90 days u/s 138

*Note: There is a risk of default due to the nature of the product. Always Consult A Cube Wealth Coach before investing in P2P lending.

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