Transparency and Disclosure Requirements

Transparency and Disclosure Requirements – As Per RBI guidelines

An NBFC-P2P shall be required to disclose the following:

To the lender

    • Details about the borrower/s including personal identity, required amount, interest rate sought and credit score as arrived by the NBFC-P2P.

      SRS FinTech / OxyLoans :

    • Details about all the terms and conditions of the loan, including likely return, fees and taxes;

To the borrower

    • Details about the lender/s including proposed amount, interest rate offered but excluding personal identity and contact details;

      SRS FinTech / OxyLoans:

  • Publicly disclose on its website:

    overview of credit assessment/score methodology and factors considered
    SRS FinTech / OxyLoans : We are using CIBIL credit score As-Is, we want to use proven method with track record.

  • The credit worthiness of the borrower is measured basis the following:

    DIR Ratio: Based on the borrower’s profile details collected, the Debt to Income Ratio of the borrower is calculated as below.

    DIR = Total EMIs / Salary) * 100

    If DTI < = 65% then the Credit report is sought from the bureau for verifying the credit score based on the history of the borrower.

    • If DTI < = 50% : Low Risk
    • If DTI > 50% and <= 65%: Medium Risk
    • If DTI > 65%: High Risk

Credit Score: The borrower’s credit score is retrieved from the credit bureau –Experian. Based on the afore-mentioned borrower’s credit file information and his or her inputs, the credit-scoring algorithm determines a borrower’s creditworthiness. The borrower’s creditworthiness is represented by assigned credit grade with a related interest rate. Immediately after being scored, loan-listing offer with obtained interest rate is offered to the borrower. The borrower may accept or reject the offer provided.

Based on the credit risk assessment, Oxyloans shall offer the best interest rate available from the lenders as per the below matrix. Processing fee will be levied as applicable.

Credit Score RangeAnnualized Percentage Rate (APR)
776 and Above24
750-77527
700-74930
649-75040
549-65048
450-55060

Post verification done, the loan is approved or rejected by the platform. In some cases, a revised interest rate is offered by the platform if the borrower rejects the originally offered rate.

Social validation: is also done through facebook and related applications to verify the borrowers Social network. Stronger and more verifiable relational network measures are associated with Higher likelihood of a loan being funded, a lower risk of default, and lower interest rates

Disclosures on usage/protection of data;
SRS FinTech / OxyLoans :

Grievance redressal mechanism;

SRS FinTech / OxyLoans : https://oxyloans.com/grievances-redressal-mechanism/

d. portfolio performance including share of non-performing assets on a monthly basis and segregation by age; and

SRS FinTech / OxyLoans : https://oxyloans.com/loan-performance/

Its broad business model

SRS FinTech / OxyLoans :

About OxyLoans
Oxyloans.com is a ground breaking online financial market place connecting lenders and borrowers. Our platform invites Banks, Financial Institutions, and Individuals as preferred Lenders. Our platform is “At the very center of the Borrower” and enables Borrower to obtain the loan quickly as compared to the traditional method.

Vision
To be a trustworthy and preferred FinTech platform enabling citizens across the world to connect and exchange funds directly from lender to borrower.

Mission
To witness INR 6500 crores funds disbursement by 2024, indirectly creating 160,000 new jobs.

Business Model
Under the P2P Lending umbrella OxyLoans enables the following:

  • P2P Lending – OxyLoans enables Individuals to act as peers and enable lending between many-many.
  • Crowd Lending to SMEs – OxyLoans enables SMEs to act as borrowers – pool of individuals to act as syndicated lenders.

Implementation Model
OxyLoans will act as an intermediary providing an online marketplace or platform for its borrowers and lenders through following implementation model:

A brief of the business model and the flow is detailed below. Since P2P business is about both lenders and borrowers – processes/steps from both the parties are explained below.

Lenders and borrowers need register online and submit the lending commitment, loan application respectively.

This involves profile verification for each and every listing. Personal, professional and financial data are collected and verified to the best extent possible from all available data sources such as government data bank, credit information bureau, social media etc. Due care is taken to safeguard the interests of both the borrowers and the lender through stringent verification process.

The borrower is required to upload all relevant documents into the portal, which may be verified by Oxyloans.

The documents to be submitted include the following:

  • PAN Card
  • Bank Account Statements of a Salary Account – 6 months
  • Email verification
  • Salary Slip – 3 months
  • Employment/Company details
  • Office ID Card
  • Passport copy
  • Passport size photo
  • Telephone bill – 3 months
  • Cheques – 1 Principal + N EMI Cheques

For Company:

  • Registration certificate
  • MoA, AoA, CIN, TAN, PAN, GST

Oxyloans does an eKYC and Aadhar validation, wherein the Identity and Address of the customer are verified electronically through Aadhaar authentication.

The complete Loan Life Cycle in wheel

Geographies

  • India

Target Segments

  • Lenders – Resident & Citizen Individuals, SME, Corporates, Banks & Financial

Institutions

Borrowers – Resident & Citizen Individuals, SME, and Corporates Products

  • SME Loans
  • Travel Loans
  • Personal Loans
  • International Business Expansion Loans
  • Motor Loans
  • Technology Loans
  • Sports Loans

Platform Revenue
We charge minimum 2.5 and maximum 7% to borrower on loan amount.

We also charge lender minimum 0.5 and maximum 1% on loan amount.

(2) NBFC-P2P shall ensure that the providing of services to a participant, who has applied for availing of such services, is backed by appropriate agreements between the participants and the NBFC-P2P. The agreements shall categorically specify all the terms and conditions among the borrower, the lender and the NBFC-P2P.
SRS FinTech / OxyLoans :
We have taken well taken care of all terms in agreement, Our sample agreement is – give the URL.

We have taken well taken care of all terms in agreement, Our sample agreement is – give the URL.

(3) The interest rates displayed on the platform shall be in Annualized Percentage Rate (APR) format

SRS FinTech / OxyLoans : We have ensured interest rates in Annualized Percentage Rate (APR) format.

Our ongoing APR table

Based on the credit risk assessment, Oxyloans shall offer the best interest rate available from the lenders as per the below matrix. Processing fee will be levied as applicable.

Credit Score RangeAnnualized Percentage Rate (APR)
776 and Above24
750-77527
700-74930
649-75040
549-65048
450-55060