Gautam Adukia, Co-founder of Liquiloans, shares his insights into his company's motivations, operations and future, in this interview. With a strong background in wealth management and fintech, Mr. Adukia, alongside his team, ventured into Peer-to-Peer (P2P) lending, inspired by the RBI’s 2017 guidelines on the sector. Liquiloans quickly became India’s largest P2P lending platform, offering a transparent, tech-driven alternative to traditional banks and NBFCs.

He explains that P2P lending, a relatively new but rapidly growing segment, provides higher returns to lenders and lower costs to borrowers by cutting out intermediaries. This is particularly appealing for small-ticket loans where traditional banks, with their long processes, fall short. Liquilians focuses on personal, unsecured loans, offering faster, more convenient options without repeated paperwork, making them ideal for frequent, small loans.

The platform’s robust system-based underwriting process, which evaluates loans in 7 to 10 minutes, ensures quick decision-making while maintaining a low NPA rate of just 1%. For applicants without a credit history, Liquiloans assesses factors like income, expenses and banking behaviour to make informed lending decisions.

Liquiloans' business model emphasizes sustainability and profitability. Gautam Adukia highlighted the importance of building trust and ensuring consistent returns for investors, making P2P lending an attractive alternative to traditional fixed deposits, especially in an environment where FD rates often fail to beat inflation.

The platform operates with a success-based, back-ended fee structure, aligning its interests with those of its investors. The minimum lock-in period for investors is three months, after which they can list their loans on the secondary marketplace for potential exits.

Looking ahead, Gautam Adukia envisions significant growth for Liquiloans, driven by the immense potential within the lending ecosystem. Despite the P2P industry’s current modest share, the low base offers ample room for expansion. The future success of Liquiloans,according to Adukia, will hinge on the platform’s ability to consistently deliver returns and scale operations effectively.