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During the unprecedented Covid crisis i2iFunding ensured that credit processes were fine tuned to face the challenges posed by lockdown and its impact on earning of borrowers. As a result i2i has been able to keep default under 1% of total loan amount disbursed since Apr-2020.
Table here shows % of loans disbursed in each risk category over the past two years. Third column loan principal under default as a % of overall loan amount disbursed in the corresponding risk category. E.g. if Rs. 100 were disbursed by i2i in last 2 years, then Rs. 29.8 were disbursed to borrowers in risk category G. Further 1.6% of Rs. 29.8 is currently under default (i.e. payment is delayed by more than 90 days). A weighted average of portfolio allocation % across risk categories and default under each risk category shows that total principal under default across all risk categories was just 0.9% of loan amount disbursed.
Highlights of Portfolio performance:
- In the last 2 financial years from April-2020 to March-2022, i2iFunding has disbursed more than 31,000 loans.
- Out of the total disbursed amount during this period, less than 1% of the loans have been delayed by more than 90 days.
- Lenders have made an average annualized return of 16.74% after adjusting for loan defaults.
- Zero loan default in the loans disbursed in Risk category X over this period.
- Investors who invested in Risk category X loans made 17.2% XIRR on their investment in this period.
What would be the value of investment in two years if someone invested Rs. 1 Lakh in April 2020?
An investor who invested 1 lakh at i2i funding in different risk categories, in the same proportion in which loans were made live on the platform would have made an annualized return of 16.7% on his investment, effectively increasing his investment to 1.36 Lakhs in a matter of two years. The chart shows the growth of investment value during this period.
Past two years performance shows that i2iFunding has provided a reliable investment options to its investors to maximize their returns while at the same time keeping their investment diversified across multiple borrowers.
At a time when stock markets are tumbling P2P investments provide an alternate asset class to investors to keep their investments safe.
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