Frequently Asked Questions

dhanaX is a startup steadily growing in strength. Our organization is powered by the energy and vision of a small team of seasoned talent and expert advisors. dhanaX's advisory panel has established, high-profile names from financial services and technology industries.

Economic independence helps the poor restore their dignity in society. Sadly though, millions of India's poor are financially under-serviced and have little hope of earning a decent livelihood. Here are a few facts:

• Only 34% of India's population has access to formal banking systems. India has the second-highest number of unbanked population in the world - about 135 million or approximately 675 million people.


• Total credit supply through existing formal channels reaches only 15% of the $90 billion demand.


• The only credit alternatives for hundreds of millions of people are local pawnbrokers or moneylenders, who usually charge an exorbitant 40% - 120% interest rates per annum.

This makes for a strong case to generate affordable, easily available loans for needy borrowers. Especially when one doesn't have to look far to source them. India is today a rapidly growing economic power with more and more Indians enjoying prosperity and higher investable income.

• In 2007, resident Indians invested close to $788 billion in short-term investments (up to 1.5 years of maturity), with $97 billion invested in relatively low-returns bank deposits (about 8% interest).


• Many of these investments earn 30 % and more as returns for their Indian investors.


• In sharp contrast their fellow Indians pay 30% and more as interest rates on a loan availed from a moneylender

Interestingly this very underprivileged class could become a potential investment avenue for the increasingly savvy investors. They are constantly looking for new asset classes to diversify their investments and could be easily persuaded to invest in the economic freedom of their fellow Indians. dhanaX taps the power of the Internet and mobile-based technologies, to enable such a financial exchange between these two distinct groups.

dhanaX is inspired by the unique ability of an online community to pool in their might to help others. dhanaX aspires to be a pioneering model for successful and innovative online social lending. dhanaX aims to:

1. Support and provide easy access to low cost credit for poor borrowers to supplement their income.
2. Provide a credible and lucrative investment opportunity for the social investor.

dhanaX targets unbanked Indian population whose annual income is between $1500 and $4500. dhanaX aims to enhance their hopes of availing easy credit.

dhanaX provides a credible, secure and easy channel for Indians to lend or borrow money. The overall platform is designed based on a few key principles:

• Only credible and needy borrowers have access to the system.
• Overall risk associated with the lender's investment is minimized.

NO. dhanaX has a sustainable "for-profit" business model. dhanaX promotes social lending as a lucrative investment for the lenders and as a means to provide easy and hassle-free credit to millions of unbanked Indians.

dhanaX's revenues come from commissions and fees. For this we tap two sources:

• We charge a 6.5% commission from borrowers on every loan that is funded on dhanaX.

• We charge a 1.5% commission from lenders on their monthly repayments.
• Lenders pay dhanaX a one time joining fee of Rs. 100/-.

Yes. dhanaX is backed by high-calibre experts and renowned names from financial services and technology industries.

dhanaX is a private limited company registered under the Companies Act, 1956. dhanaX operations comply with all the relevant Indian regulations.

• Must be 18 years of age or above.
• Must be a resident Indian or a Non-resident Indian (NRI) with a valid Indian bank account.
• Must not possess a money lending license or is not primarily into the business of money lending.

Yes, you can, provided you hold a valid Non-Resident External Rupee Account (NRE account) or an Ordinary Non-Resident Rupee Account (NRO account).

You can register with dhanaX using two very basic steps. The first is online and the second is an offline process:

• Step 1:
  Online Process:
  

  You register on the website through a valid email address. You will be asked to provide some key information that includes your personal and bank details. On accepting our terms and conditions you will be guided through the next few steps which essentially make the offline process.

• Step 2:
  Offline Process:
  

  After you sign-up online, dhanaX will send an activation form (a PDF file) to your email id. You fill up and sign the activation form and send it back to dhanaX. Along with the form, you need to submit your identity and address proof.

  On successful completion of the above two processes, you will be registered with dhanaX and can start lending.

Yes. You need to pay a one time joining fee of Rs.100/- to become a lender on dhanaX.

Once you sign-up online at dhanaX, you will be asked to submit the following documents to complete your registration process.

1. A completely filled-up activation form which is essentially a share application form in DeX Financial Solutions Ltd - dhanaX's payment acceptance company.
2. A one time joining fee of Rs. 100/- (as cash or as a cheque).
3. Your PAN Card for Identity proof.
4. Any of the following for Address proof:
• PAN Card
• Telephone Bill (Mobile/ Landline)
• Ration Card

You can post or courier all the documents to:

Once we receive your proper documents, your account will be activated within two working days. You'll be informed of the same through an email.

dhanaX will charge a service fee of 1.5% of the total repaid amount by the borrower. There are no hidden charges whatsoever.

There are two methods of lending on dhanaX - Direct Lending and Diversified Lending. You can choose between the two.

We recommend Diversified Lending as your investment is distributed across many borrowers minimizing the risk of default in repayment.

In Direct Lending, you lend to a single borrower. The steps are very simple:

1. You select a borrower whose profile interests you.

2. After selecting the borrower you will be prompted to accept the loan agreement, thus finalizing the process.

In Diversified Lending, you lend to more than one borrower, thus diversifying your money among many borrowers. The steps are very simple:

1. You select more than one borrower.
2. Depending on the number of borrowers you distribute your loan amount equally among them.
3. You will then be prompted to accept the loan agreement, thus finalizing the process.

We strongly recommend that you choose this method of lending. Here the risk involved is greatly reduced as your investment is distributed across many borrowers.

You can become a lender on dhanaX with a minimum investment of Rs. 1000/-. What a simple way to become part of the social lending revolution!

At any given point of time, you can lend up to Rs.1,00,000 on the dhanaX platform.

Your money will reach the borrower as soon as his entire loan amount is funded. dhanaX will intimate you about this through an email. You can also log onto dhanaX and check the Myloans section. You will be able see the status of your loan. If it says "with borrower" you will start receiving your monthly repayments (both interest and principal).

For the period that your money remains with dhanaX, you will receive the savings account interest rate earned from the bank during that period.

Once the entire loan amount wanted by the borrower is raised, no time will be lost in handing over the same to him! This will be done by our agent through whom the borrower applies for the loan. Just check your dhanaX Wallet account to get exact details of the transaction. Following this the agent keeps a regular check on the borrower and collects the monthly repayments from him. We are working to provide you regular information on how your money is being used by the borrower.

Every loan on dhanaX has a time period of 45 days from the date of posting. If the loan you have invested in is not funded within that time period, your money along with savings account interest will be sent back to the bank account details you have given to dhanaX. At this time, you also have the option of lending to some other borrower(s).

No, This is how it works... borrowers quote the rate of interest they are willing to pay on their loan amount. This information is posted against each borrower. Depending on the borrower/s you finally decide to lend to, you agree to the rate of interest he/they propose. What this also means is that you can choose or reject a borrower as per the interest they offer!

While you can't exactly decide the loan duration, you can choose from three different loan tenures like 6 months, 12 months and 18 months. You will be then shown the list of borrowers appearing under the loan tenure you have chosen.

While there is no lock-in period as such, as a lender you commit to a specific loan repayment duration. This could be anything from 6 months to 18 months. The loan repayment could be monthly or end of the term, depending on what has been mutually agreed on. Once the lender agrees to a loan duration and type, he can't change the terms.

For a lender, except during the stage of registration, most of his transactions are done online. Any information on your transactions or your repayments will be made available to you online in your dhanaX Wallet account.

dhanaX platform is designed to ensure that the risk associated with your investment is minimized and you get to lend to only credible borrowers. We address risk in the following ways:

1. Stringent verification procedures: All the potential borrowers undergo extensive identity, address and income verification before registering on dhanaX.
2. Risk profiling: All the loan applications are analyzed on 40 different parameters to provide as thorough a credibility rating as is possible. These ratings guide you while choosing a credit-worthy borrower.
3. Risk diversification: You get to reduce your risk by diversifying your investment across multiple borrowers.
4. Stringent collection practices: dhanaX through its agents regularly follow-up with the borrower/s and ensure that repayments are collected on time.

When you choose diversified lending, you agree to lend your money to more than one borrower. There is a big advantage in doing so. Because your investment is spread across many borrowers, in the eventuality of any one of them defaulting on their repayment, you lose very little money.

We do our best to establish a scientifically thorough study of our borrowers. A borrower approaches us through our network of well-established agents. These agents undertake a detailed study to establish the credentials of the enterprise and the capacity of the borrowing party to honor the repayment of loan. They apply multiple background checks including ID verification, address verification, etc., and various parameters to arrive on a fairly informed borrower credibility rating. The borrower is then graded as 'Poor, Average or Fair' to give you a risk profile. This information is posted online along with past repayment history to assist you in your lending decision.

Credit profiling scores are like a grading system. Borrowers are graded as 'Poor, Average or Fair' based on their risk profile. If you are a lender, it helps you choose the borrowers to lend to.

Please note that credit profiling scores are only indicative and do not guarantee against a borrower defaulting on repayment.

Credit ratings published online at dhanaX are arrived after analyzing each borrower application on 40 different parameters. Some of the sample parameters used are:

• Borrower's income generating sources.
• Stability of the borrower in terms of residence, occupation, etc.
• Number of dependents on the borrower.
• Borrower's age.

Agents make the most important links and components of the dhanaX business model. Since they source and service the borrowers. We make sure that these agents are well established with a fairly long and sound reputation in their area of work. All dhanaX agents are pre-selected, certified and evaluated before they are enrolled as agents. Some of the selection criteria for the agents are:

• Should be well established, enjoy good reputation and have the confidence of local people.
• Should have a satisfactory track record of at least 2 years.
• The organization or its members should not have been involved in any fraudulent activities or hold any criminal record.
• They should have significant local presence.
• Should have thorough knowledge of the area where they operate.
• Past dealings with financial institutions should have been satisfactory.

It is fairly secure to transact on dhanaX. We ensure the security of your transactions on our website using a variety of security technologies and procedures. These protect your personal information from unauthorized access, use or disclosure. Unless required by the law of the land, we do not share the personal and bank details you provide on the site without your permission. dhanaX is a credible and secure platform to lend or borrow money.

dhanaX is only a social lending platform. The lender and the borrower transact on mutually agreed terms. dhanaX, by itself, does not guarantee fixed returns on the loan. What you get will depend solely upon the capacity of the borrower to pay. dhanaX also doesn't stand guarantee against any borrower defaulting on repayment. You lend at your own risk.

However we do go all out to avoid risky borrowers by doing diligent checks on them. Also, we publish the credit profile ratings and past repayment history on the site to assist you in your lending decision.

You will receive the repayment on a monthly basis during the term of your loan. dhanaX, through its agent network will collect repayments and transfer the amount to your dhanaX Wallet account.

Every month repayments (Principle + Interest) collected from your borrower/s will be credited in to your dhanaX Wallet account with dhanaX. The credited amount will reflect in your online dhanaX Wallet account.

Your loan repayments are recovered from the borrowers every month or at the end of the loan term, depending on the terms agreed. This is facilitated through our agents.

If a borrower repays only part of the loan, dhanaX will appropriate the amount in such a manner that each lender attached to the loan receives a share that is proportionate to the amount invested by him. In such a scenario, no service fee or money transfer cost will be charged to you.

If the complete loan amount with interest is not repaid within the stipulated time period, the lapse is escalated to the agent who attends to the collection of the loan. A loan amount is flagged as loan default if the repayment is not made within 180 days from the agreed due date.

dhanaX Wallet is your online account with dhanaX. It helps you keep track of your transactions and maintains a record of repayments credited to you. You loan or withdraw repayments from your dhanaX Wallet account.

You can add funds to your dhanaX wallet in the following ways:

1. Sending a cheque in the name of "DeX Financial Solutions" - dhanaX's payment acceptance company.
2. Online transfer:
You can do an online transfer by logging into your net banking account. Please use the following account details for transfer.
Account No: - 04462320001362
Account Name: - DEX Financial Solutions
Bank Name: HDFC Bank
Branch Name: - Gandhi Bazar, Bangalore
IFSC Code: HDFC0000446
Reference: (Your Email ID)


The transfer is free of cost and the process usually takes about two working days. We will require you to update the transfer details in your dhanaX account so we may be able to cross-verify the transaction. An email will be sent to confirm the payment.

You can request for a withdrawal of funds from your dhanaX wallet. You can do this online at dhanaX.

Once you place a request, it'll take 3-4 working days to get the funds into your bank account.

You can place a request for withdrawal whenever your repaid amount is more than Rs. 500/-.

Borrowers approach through dhanaX's agents who verify their credentials. If they are deemed to be credible borrowers, they can state the terms for the loan i.e. the amount required, the duration of the repayment and the interest they can pay.

A borrower becomes eligible provided he satisfies the credit-worthiness parameters set by dhanaX. Every potential borrower is evaluated on the following parameters:

• Physical address verification.
• Business and income source verification.
• Identity verification.

dhanaX agents are from pre-selected renowned, well-established and certified grass-roots organizations. Typically they are small microfinance organizations, rural technology centres, non-government organizations, etc.

Agents are the gateway to the borrowers. They perform multiple tasks:

• They identify genuine, credible borrowers.
• They conduct extensive background checks on the borrowers to verify his credibility.
• They determine the prospects of the borrower's enterprise and its capacity to repay the loan.
• They reach the loan raised by dhanaX to the borrower.
• They do regular checks on how the loan is being used and how well the enterprise is moving.
• They collect repayments for the loan from the borrower.

In a country where poor income people have no means to escape from debilitating debt cycles, dhanaX can help them revive their hopes of a decent livelihood.

• Borrower can access cheaper loans by eliminating intermediaries and unscrupulous moneylenders.
• Borrowers can avoid the long waiting periods it takes to secure a bank loan.
• Borrowers can avoid middlemen and unscrupulous moneylenders.
• Borrower can decide on an interest rate that's within his limit and be sure to find keen lenders for the same.
• Borrower can rest assured that he needn't mortgage his property or provide any other collateral.
• Borrower needs to only prove the capacity of his enterprise to repay the loan to become eligible for one.

No, currently all our loans are unsecured. We don't ask borrowers for any collateral.

No, a borrower can take only one loan at a time through dhanaX.

Borrower can avail of loans in the range of Rs. 10,000/- to Rs. 20,000/-.

Not yet. However, since the credit extended on dhanaX serves a social cause, efforts are on to convince the regulators to consider such investments for tax-exemptions.

At present we are specifically servicing poor income people in semi-urban & rural areas. And these loans are to support their enterprise or farming activities that can generate a decent income. No, at the moment we are not catering to middle or higher income people nor do we provide them any business or personal loans.

Yes. You can extend credit on dhanaX to borrowers living in India. For this, you should hold a valid Non-Resident External Rupee Account (NRE account) or an Ordinary Non-Resident Rupee Account (NRO account).