Borrower FAQs

What does P2P lending mean?

Peer-to-peer (P2P) lending is the practice of lending money to unrelated individuals, or "peers", without going through a traditional financial intermediary such as a bank or other traditional financial institution. 

What is SMECashLoans.in?

SMECashLoans.in is an online peer-to-peer (P2P) marketplace lending platform in India that provides small, medium enterprises (SMEs)/small, medium businesses (SMBs) instant, flexible, short-term cash loans and business loans without needing any hectic paperwork and security. We help businesses avail short-term cash loans and business loans in a simple, quick and flexible way. We provide investors a platform to invest in cash loans and business loans thereby catering to the needs of SMEs/SMBs as well as earning better returns. 

From a borrower’s perspective, what is the entire process at SMECashLoans.in?

  • A Simple One-Time Registration:  The registration is completely online from start to finish. You need to complete this to become an approved borrower.
  • Quick Verification/Approval: We evaluate you based on your Personal - Professional - Social Credibility and your Business Credibility.
  • Instant Fund Transfer: Once you register as a borrower, you can avail cash loans and business loans conveniently...

Why does SMECashLoans.in provide short-term instant money?

Small, medium enterprises (SMEs)/small, medium businesses (SMBs) need small, short-term money instantly for many temporary situations arising out of day-to-day business. We have realized that there is an unfilled gap in the market catering to SMEs/SMBs seeking instant cash loans and business loans. And the businesses are willing to pay premium for simple, quick and flexible service.

How can SMECashLoans.in provide short-term cash loans and business loans instantly without any hectic paperwork and security?

We evaluate you based on your Personal - Professional - Social Credibility and your Business Credibility. Our technology-enabled underwriting algorithm predicts each borrower’s financial ability to repay and personal intention to repay. Therefore, our statistical model predicts defaults with better accuracy.

How does SMECashLoans.in evaluate Personal - Professional - Social Credibility and Business Credibility?

  • We validate each SME/SMB’s:
    • Identity
    • Personal Profile
    • Employment Credentials
    • Social Profile
    • Business Credentials
  • Our proprietary underwriting algorithm then predicts each SME/SMB’s:
    • Financial ability to repay
    • Personal intention to repay

Who are the target borrowers for SMECashLoans.in?

  • Over 21 years of age
  • An Indian resident
  • Earning (Self-Employed) (Small, medium enterprise (SME)/small, medium business (SMB))

What are the documents needed for the one-time borrower registration?

  • Proof of Address (POA): Passport or Aadhar Card or Driving License or Voter ID
  • Service Tax/Sales Tax/VAT Number/Trade Number
  • Company Bank Account Statement for the last 6 months
  • Company PAN Card
  • Company Address Proof
  • Business Proof/IT Returns

How can I apply for loan and when will the loan be credited?

Once you register as a borrower, you can avail cash loans conveniently... Login to your account, click ‘APPLY LOAN’, select ‘How much money do you need?’, and click ‘Apply Now’. Once you request a loan, SMECashLoans.in team will try its best to transfer money to your bank account instantly.

How does the Interest & Fees work? Is it fixed or variable?

Interest & Fees is calculated on a daily basis and is variable. The maximum repayment period is 30 days. Beyond 30 days, you will attract a one-time loan extension fee or processing fee after tenure. The faster you repay, the lesser is the Interest & Fees. You can login to your account and under ‘Repay Loan’, you can see the outstanding till date. The outstanding gets updated every day. So, you only pay for “what you use”. The loans are extremely flexible, there are no hidden costs.

If the Interest & Fees is variable, how can I know the charges upfront?

As mentioned above, the slider on the APPLY LOAN page is for your information regarding how the Interest & Fees varies as the borrowing amount and the repayment date varies. All these charges are mentioned upfront in the sliders and there are no hidden charges.

When can I repay the loan?

You can repay the loan any time before the maximum repayment due date of 30 days. Beyond 30 days, you will attract a one-time loan extension fee or processing fee after tenure. Since the Interest & Fees is calculated on a daily basis, the faster you repay, the lesser is the Interest & Fees. You can login to your account and under ‘Repay Loan’, you can see the outstanding till date. The outstanding gets updated every day. Hence, we request you to click ‘Repay Loan’ and check the outstanding and accordingly repay. So, you only pay for “what you use”.

Are there any pre-closure charges?

No, there aren’t any pre-closure charges. All these charges are mentioned upfront in the sliders and there are no hidden charges.

Can I extend a loan?

Yes, but beyond 30 days, you will attract a one-time loan extension fee or processing fee after tenure.

Is there any part loan repayment?

No, there isn’t any part repayment. But, since the Interest & Fees is calculated on a daily basis, you only pay for “what you use”.

Can I apply for multiple loans?

You can apply for multiple loans until your ‘Current Eligibility Limit’ gets exhausted. You can see your ‘Current Eligibility Limit’ once you login to your account under ‘Home’.

How can I repay the loan availed through SMECashLoans.in?

To Repay Loan, use Net Banking to transfer funds online to our account or deposit money (including cash handling charges) directly to our account. Please send us the payment receipt to info@smecashloans.in for us to acknowledge and update the loan status. Please add us as your Registered Payee. Below mentioned are the sample steps: Open your bank website (Ex: www.icicibank.com); Login to your Net Banking; Add us as your Registered Payee

What are the Interest & Fees at SMECashLoans.in?

  • Processing Fee =  Rs5000 or 2.5% of Amount Borrowing (whichever is higher) (One-time fee irrespective of borrowing amount & tenure)
  • Interest = Amount Borrowing*Rate of Interest*Tenure; Rate of Interest = 0.1% for 1 to 10 days; 0.125% for 11 to 20 days; 0.15% for 21 to 30 days
  • Processing Fee After Tenure = Rs6000 or 2.5% of Loan Outstanding (whichever is higher) (Applicable after 30 days tenure)

Why was my membership rejected even after proving all the info?

The possible reasons could be following: Incomplete Profile due to missing/incorrect documents/information; Your profile could not meet our eligibility criteria; You can always reach out to us if you are willing to complete/improve your profile.

What is our policy on disclosure/security of borrower’s information, documents and social profile?

The borrower’s identity will not be disclosed on the website to the public and the entire transaction will be processed under confidential environment; unless and until you default the loan availed. We protect your personal information from unauthorized access and use; we use security measures in its implementation by adopting advanced practices prevailing from time to time.

How does SMECashLoans.in justify the higher Interest & Fees compared to the market?

Small, medium enterprises (SMEs)/small, medium businesses (SMBs) need small, short-term money instantly to cater to many temporary situations arising out of day-to-day business. And there is an unfilled gap in the market catering to businesses seeking instant cash loans. In such temporary situations, cash loans for businesses are a great alternative to traditional bank loans. SMECashLoans.in is here to help SMEs/SMBs with instant money when they need it the most! We facilitate short-term cash loans and business loans in a simple, quick and flexible way. The borrowers are willing to pay premium for simple, quick and flexible service. We do agree that our annual Interest & Fees is high but you need to acknowledge the fact that our instant cash loan is only for short-term (1-30 days). Comparing our short-term instant cash loans with other loans in the market is not fair. It is a bit like trying to plan a short vacation at a luxury hotel, using the theoretical cost if you were planning to stay all year.

What does SMECashLoans.in have to say to the borrowers about short-term instant money?

We are here to help you with instant money when you need it the most! But, do remember that Interest & Fees is calculated on a daily basis, the maximum repayment period is 30 days and there is no part repayment. Beyond 30 days, you will attract a one-time loan extension fee or processing fee after tenure. The good thing is you can pay anytime you want to. You only pay for “what you use”. The faster you repay, the lesser is the Interest & Fees. So remember all these before you apply as we expect you to adhere to the repayment date. If you are not sure/comfortable with our terms and service, please do not apply in the first place.

What happens if the borrower doesn’t repay the loan within the maximum repayment period of 30 days?  

We would make all possible efforts from our side to recover the loan. First, we would try reaching you via mobile, mail, etc.… post which we would make further attempts to contact you and discuss the situation. We would leverage your social profile by reaching out to all possible contacts and we would initiate all legal procedures to recover the money from the defaulter. Having said that, we will do our best to reach a solution and come to an arrangement. Also, the recovery costs and arrears will add up to all your upfront costs. Finally, your SMECashLoans.in trust rating will take a knock and you probably won't be able to borrow from us again. None of these things are worth the risk. So, if you are not sure/comfortable with our terms and service, please do not apply in the first place.

What is Trust Rating (TR) and how is it calculated?         

Trust Rating (TR) is our assessment of a borrower’s credibility, reliability, trustworthiness… SMECashLoans.in Trust Rating (TR) comprises of a borrower’s Personal - Professional – Social Credibility, Business Credibility, Membership, Activity… A borrower’s Trust Rating (TR) keeps updated based on borrower’s interaction with our platform, activity on the platform, loans availed/repaid, membership…