Faircent is a marketplace where potential lenders and borrowers can register and then interact amongst themselves to strike deals on lending and borrowing.
It’s the same age-old concept of borrowing the money from the people from whom we know. I am talking about an era where banks existed but had limited usage. The majority of the people at that time still did not borrow money from the banks. If you have seen then famous bollywood movies there were the greedy landlords who used to lend money to poor farmers at certain interest rates. In lieu of that farmers had to guarantee their houses or pieces of land. This used to be era of where majority did not know what bank is or they were too skeptical about banking process.
Now with the advent of technology people are aware of loans from banks and financial institutions. If we have to buy a car we usually go for a car loan and get it converted to easy monthly installments. This is an era of EMI’s and credit cards. But there is nothing to be proud of as we saw the recession of 2008 and how the economy was shattered.
Since Faircent is based on the model of Peer-to-Peer lending, it has an advantage in the current financial system. With the credit card interest rates at sky-high and tedious process of bank loans, Faircent definitely has an edge when it comes to providing people a fair platform for interaction.
Wharton Management Professor Keith Weigelt describes P2P lending as an attempt at disintermediation of the banking system, a form of “shadow banking.” He draws a parallel with such practices in China, where many private lenders thrive amid government restrictions on bank credit. Peer-to-Peer (P2P) lending bypasses banking system by connecting borrowers with lenders through online platforms for mostly small loans using proprietary technology to assess risk, creditworthiness, and interest rates. (Source: Knowledge@Wharton)
With a mission to provide the best rate of interest to both borrowers and lenders and to make the whole process less complicated and reduce the burden of heavy interests, Faircent was incorporated.
Faircent was founded by Rajat Gandhi, Vinay Mathews, and Nitin Gupta. Rajat Gandhi has hands-on experience in launching and building the online portals. Rajat says that Faircent is based on P2P model, which is fairly a new concept in India, people tend to hesitate a bit. Since it provides an easier and much transparent option to both the lenders and borrowers, it is gaining popularity amidst the entrepreneurs.
Vinay, having done his MBA from IMS, DAVV, Indore has been with internet businesses for over 15 years. He served in many top positions with Timesjobs, Sify Technologies Ltd., and Alliances for Rediff.
Also Nitin brings with him a wealth of senior leadership experience and expertise from the financial services, consumer internet, and packaged goods industries. He served as Country Manager and CEO for MasterCard (South Asia) and President of GE Capital India’s Retail Financing operation. Earlier, as President of Rediff.com, Nitin led the company to become one of Asia’s premier internet brands and a successful NASDAQ listing. His early career was at Unilever.
Led by internet veterans and senior leadership, Faircent has been recognized by various industry forums. It was one of the top 10 companies from India to the ALPHA program, to exhibit at the Web Summit in Dublin in October 2013. It has been selected to be part of NASSCOM’s 10,000 start-up initiative. Faircent is also a Microsoft BizSpark company. BizSpark is an international network of entrepreneurial startups and partners. Faircent was the runners up in the START Tel Aviv Contest in India, an initiative by TiE and Israel Ministry of Foreign Affairs.
Faircent is one of the very first startups promoting peer-to-peer community based lending platform in India and it’s gaining recognition day by day.