Faircent, India’s largest peer to peer lending marketplace announced a partnership with Baxi, India’s first on demand bike taxi, to provide easy access of two-wheeler loans to Baxi drivers. Faircent’s maiden venture into auto loans would enable Baxi drivers to fund their two wheelers by registering and seeking a loan through the platform. With this product, lenders registered on Faircent now have an additional investment product.
This is the first time in India that a P2P lending platform has introduced loans against collateral for its lenders. Faircent.com is in fact planning to introduce a series of asset-based investment products by exploring similar options with other large businesses to extend trade advances to their channel partners – retailers as well as distributors.
Speaking on the development, Mr. Vinay Matthews, COO and founder, Faircent said “In order to provide newer product offerings and tap the underserved two wheeler loan market, we have tied up with Baxi. The on demand bike taxi market of India can further flourish if funds are easily available to drivers. This serves better with our goal to provide easier access to credit and lead the way in democratizing financial services around the globe.’
Complimenting Mr. Matthews, Ashutosh Johri, founder, Baxi said, “Belonging to a lower income background, many of our drivers find it difficult to purchase a bike for commercial purposes. Our arrangement with Faircent will not only help fulfil their dreams but it will also open a lot of avenues for us.”
Under the arrangement, Baxi drivers will be registered on the platform as borrowers and lenders can choose to fund their requirements at reasonable interest rate with flexible period ranging from 6 to 36 months. Borrowers would be allowed to register only after their due diligence and credit worthiness is assessed.