LoanX offers a secured, RBI/SEBI-compliant, investment-grade opportunity with fixed returns up to 14% from a diversified loan pool.
These loans are issued by RBI-regulated and rated NBFCs and LoanX is rated by independent credit rating agencies registered with SEBI, such as CRISIL, India Ratings, ICRA, etc.
LoanX typically has a tenure of 12 to 24 months, with monthly interest and principal payments at a fixed rate.
LoanX comes with a security cover that includes cash collateral, over-collateralization, and excess interest spread, making it safer than P2P lending.
REASON AND BENEFITS
High Returns
By investing in a diversified pool of loans, you can earn fixed, non-market-linked returns of up to 14% pre-tax IRR.
Regulated and Transparent
LoanX opportunities are fully compliant with RBI and SEBI regulations, ensuring investor protection. As a credit-rated fixed-income instrument, LoanX provides high returns while maintaining greater transparency compared to P2P lending platforms.
Secure Oversight
Investments are securely held in a demat account, with returns credited directly to your demat linked bank account. Additionally, a SEBI-registered trustee oversees the LoanX process, ensuring that security measures are in place to address any payment del
How to Invest?
- Look for Ratings: Independent agencies like CRISIL, ICRA, and CARE rate LoanX opportunities based on the credit assessment of the underlying loan pool and/or the NBFC partner that originates the loans.
- Understand the Rating Scale: LoanX opportunities use a rating scale from AAA (lowest risk) to D (highest risk/default), where higher-rated investments are more secure, while lower-rated ones carry more risk but potentially higher returns. Modifiers (like '+' or '-') provide additional nuance within each grade.
- Security Cover: LoanX opportunities are often backed by collateral such as physical assets, receivables, or cash flows, offering a layer of protection for investors and have a security cover consisting of over-collateralisation, cash-collateral and excess interest spread.
- Risk Mitigation: In the event of borrower defaults, this collateral allows LoanX to recover funds, reducing overall investment risk.
- Short-Term vs. Long-Term LoanX deals: LoanX deals can range from short (12-15 months) to long-term (24+ months). Short-term LoanX deals generally have lower yields and risk, while long-term LoanX deals can offer higher returns but come with more uncertainty.
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?
Is it okay if I transfer the funds from someone else’s account?
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