Borrower FAQs

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How do I apply for a loan?

Applying for a loan through Monexo is simple and fast. You can complete the entire process online.

  • Step 1: Register as a borrower.
  • Step 2: Upload the documents required online and submit your loan application for review.
  • Step 3: Monexo will review your loan application and once approved, you will receive a quotation from Monexo. You also have the option of choosing your own interest rate which may be less than what Monexo offers you. Once you approve, we will list your loan request in the marketplace for lenders to fund.
  • Step 4: Your loan request will be listed for a maximum of 15 days during when lenders can choose to fund your loan. Once your loan is funded, it will be paid into the bank account that you have shared with Monexo. On the last day of listing, if more than 60% of your loan is funded, we will pay the funded loan amount to you. Loans which are less than 60% funded on the last day of listing will be removed from the marketplace.

Why borrow through Monexo and not a bank?

Being an online peer-to-peer lending marketplace, Monexo is able to eliminate many of the costs that are incurred at banks and large financial institutions. We then translate these savings into lower interest rates for you. In addition, since the loan process is completely online, we are able to process your loan much faster.

What are the fees associated with the loan?

When your loan is funded you will pay a percentage of the loan amount, ranging from 2% to 4% depending on your Monexo rating, as a servicing fee, which will be deducted by the trust company from your loan disbursement prior to depositing the funds in your account.

What is a Monexo Rating?

Each loan application received by Monexo is screened and given a Monexo Rating.

The Monexo proprietary screening system is based on the information provided by you in your application form and the supporting documents (which include your income and past payment history).

The ratings range from M1 to M8, with M1 being the best. The interest rate associated with the M1 to M8 band will vary based on Monexo's Policy.

Once the loan listing is approved, the Monexo Rating is displayed in the marketplace along with the loan listing details for lenders to view.

What is the difference between a listing and a loan?

A listing is your request for loan displayed in the Monexo marketplace. Lenders can view the loan listings in the marketplace and may choose to fund your loan. A loan is when the funds are disbursed to you after your loan listing receives funding as per listing norms from the lenders in the marketplace.

Can I borrow money for any purpose?

You can request a loan for any purpose you select from the options listed in the application form. Maybe you need this to improve cash flow, tide over short term needs, lower the cost of borrowing or even buy a property overseas. All of these are possible.

If I apply for a loan, how long will it take till the money is in my account?

Once your loan is approved, we will list your loan request in the marketplace for lenders to fund. As soon as your loan is fully funded or your loan is funded 60% or more & reaches a 15 day listing period, we will disburse the money to your designated bank account as per the processing time taken by the bank.

Can I repay my loan early, either fully or partially?

You have the option to prepay the balance loan amount earlier than the contracted tenor, provided you repay 100% of the outstanding amount (including the interest due till date) in one go.

If you wish to close a loan before the loan maturity period, there will be a one-time prepayment fee of 3% of the principal outstanding payable by you when you close the loan.

However, partial prepayments are not allowed.

What is the maximum loan amount I can borrow ?

Monexo offers loans from Rs. 50,000 to Rs. 500,000. However as per RBI guidelines (https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11137)

you are not allowed to borrow more than Rs. 10 lakhs across all the P2P Lending platforms.

By agreeing Monexo T&C’s you are agreeing to the above

What is meant by the EMI Moratorium facility ?

As per RBI’s announcement, vide Notification No: RBI/2019-20/ 186/DOR.No.BP.BC.47/21.04.048/2019-20 dt.March 27, 2020, ‘eligible’ personal loan borrowers across lending institutions can opt for a 3 month EMI payment moratorium on their EMI payments falling due between March 1st 2020 and 31st May 2020.

An EMI Moratorium is a temporary ‘payment holiday’ where the borrower is not required to pay any EMI during the moratorium period. Non payment during this period will not impact the borrower’s credit score or attract any delayed payment charges.

The Moratorium is only a ‘deferment’ of EMI payment by 3 months and is not a waiver of EMI repayment.

Will I be automatically eligible for the EMI Moratorium facility

No, your loan is not automatically included for EMI Moratorium facility. Given the CoVid-19 pandemic, the RBI has only ‘permitted’lending institutions to extend the Moratorium facility to eligible borrowers. The final decision to offer the EMI Moratorium facility lies with the lending institution - in this case, Monexo.

At Monexo, we have always been cognisant and sensitive to the financial health of our customers and in an effort to support borrowers who may be facing economic challenges during this period of uncertainty, we will offer this facility to eligible borrowers.

As a borrower, how do I know if I’m eligible for the EMI Moratorium ?

All borrowers who are current i.e. no overdues on their Monexo repayment and have a loan outstanding on Monexo as on 1st March 2020 can apply / opt for the EMI Moratorium facility.

You will hear from us shortly via email regarding the Moratorium application process and If you wish to opt for it, please follow details provided in the email sent to you.

We will revert with our decision on whether you have been found eligible for our Moratorium facility. within 48 hours.

To learn more, you can also write to loan@monexo.co or call 044-66699666

I have availed a Monexo personal loan post March 1st 2020, will I be eligible to apply for the Moratorium facility ?

Only borrowers who have availed a Monexo loan on or before 15th Feb 2020, will be eligible to apply.

Should I opt / apply for the EMI Moratorium facility ?

If the CoVid-19 pandemic has not adversely affected your financial health and if your ability to pay has not been impaired due to loss of wages or job loss, you are encouraged to NOT apply / opt for the EMI Moratorium facility.

The Moratorium facility is a temporary relief measure targeted to help only those borrowers whose short term cash flows have been severely impacted due to the CoVid-19 crisis

What is the last date for opting in to the EMI Moratorium facility ?

The last date for application to opt in to Monexo’s EMI Moratorium facility will be March 31st 2020.

I do not wish to apply / opt for EMI Moratorium facility. What do I need to do ?

If you do not wish to apply / opt in, you can share this preference in the Google form sent to you in the offer email and it will be presumed that you do not wish to apply for the Moratorium facility.

I do not wish to Opt for EMI Moratorium facility. How do I continue to make repayments?

If you do not wish to avail the Moratorium facility, the NACH DEBIT mandate will continue to be presented as usual monthly to realise the EMI payments. If your NACH DEBIT mandate is not yet Active, you can send the payment through NEFT / IMPS to



ACCOUNT NUMBER: 10000782323


During the EMI Moratorium period, will non-payment of EMI impact my credit score?

If you have either not opted for the Moratorium or have applied for the same but not been found eligible, any missed payment will continue to be reported to bureaus and will impact your credit score negatively.

If you have applied and have been found eligible for the Moratorium, non-payment during the Moratorium period will not impact your credit score at all.

What is the Start and End date for the EMI Moratorium facility ?

If you are found to be eligible, The EMI Moratorium will be applicable on your EMI payments falling due between March 1st 2020 & May 31st 2020.

How will the EMI Moratorium work ?

If you are found to be eligible, your Monexo EMIs will not be auto debited from your bank account between 1st April 2020 to 31st May 2020. Hence you would not need to pay any EMIs till 31st May 2020.

The interest accrued during the moratorium period will however be adjusted out of the EMI payment due on 01-June 2020 and the balance, if any, will be adjusted towards Principal.

The total interest payable on the loan for the full tenure will be higher than the interest communicated at the time of disbursement of the loan.

Can you help me understand my EMI payment structure under the Moratorium with an example ?

Here’s an example to help you understand this better :

A. EMI deferment timeline : For instance, if you have availed a personal loan with Monexo in 01-Dec 2017 for 36 months and have been found eligible for the EMI Moratorium, your contracted last payment date would have been 01-Dec 2020.

However, on account of the payment Moratorium - the revised last payment date would now be either 01-Feb 2021 (if you have already paid the EMI due for March 2020) or 01-March 2021

B. Interest calculation : Interest shall continue to accrue on the principal remaining as of today (27-Mar-2020) during the moratorium period. Example: If your loan outstanding is Rs. 108,000 with an interest rate of 18% then for the payment holiday you will pay Rs. 4,900.00 higher interest. (Rs 108,0000 x 18% x (92) number of days of payment moratorium / (365) number of days on the year). This is for illustration purposes only and can differ in system. Please download the Monexo app from Google Playstore

How can I continue to make repayments after the Moratorium period ?

You can continue to make revised EMI payments post the Moratorium period via auto debit facility.

I have more queries regarding the EMI Moratorium facility. How can I get them addressed ?

Please write to us on loan@monexo.co

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What is the process of listing a loan after submitting a loan application?

Monexo will review your application for completeness and may contact you for additional information as needed.

If your application is approved, you will get a loan offer which includes loan amount, interest rate and tenor. Once you accept the offer, we will list your loan on the marketplace for lenders to fund. If you don’t accept the loan offer, you also have the option of choosing a reverse bid specifying the interest rate you expect.

Your loan listing will appear on the marketplace for 15 days, during which time lenders will have the ability to fund your loan listing.

When will the loan get disbursed to me?

The loan will be disbursed once it has received 100% funding during the loan listing period.

Otherwise, if on the last day of listing in the marketplace (15th day), if you have received more than 60% funding on your loan listing, the loan will be disbursed to you to the extent of the amount funded in the marketplace. If the funded amount is less than 60% on the 15th day, the loan amount won’t be disbursed to you.

You will be informed upon loan disbursal and the loan proceeds will be deposited into the bank account that you have provided in the application form.

How do I withdraw funds once my loan is funded?

Once your loan is funded, the third party trust company will send your loan proceeds directly to your verified bank account. You will get an email confirmation, please track your funds in your bank account. Any banking fees charged will need to be borne by you.

When is my payment due?

If your loan is disbursed on or before 15th of a month, then your first EMI will be due on 1st of the subsequent month. For example, if your loan proceeds are disbursed on 5 April, then your first EMI is due on 1 May.

If your loan is disbursed after 15th of a month, then your first EMI will be due on 1st of the month after the subsequent month. For example, if your loan proceeds are disbursed on 20 April, then your first EMI is due on 1 June

Thereafter, for every EMI, the due date is 1st of the respective month.

Do note that interest is payable from the date of disbursal to the date of payment.

What happens if I am late for my payment?

Monexo has a proactive payment reminder service, so we will email you to alert you for payment by due date.

However, if you have been unable to make your payment on the 1st day, you have a grace period of repaying by 10th of the month.

If the payment is not made into the trust account latest by the 10th of the month, you will be charged a Rs 1000 late fee and your balance, including the late fee, will be subject to a higher overdue interest rate on a daily basis at 36% pa until the EMI and the late fee are paid.

If your EMI, late fee and overdue interest are not received within the month they are due, your loan will be referred to an accredited collection agency. This could impact your credit rating and future credit opportunities.

Do you report my loan performance to the Credit Bureau?

Monexo reports your performance to the Credit Bureau.

In what circumstances the lender can come to know my identity?

If you default on the loan, we will be required to share your identity with the lender.

How do I know that the lenders are receiving the repayment?

Monexo has appointed an independent third party (TPA) to be the administrator of the funding account where the funds are managed. You get a confirmation that your repayment has been received. We keep all lenders informed regularly of their investment balances and transactions in their loan portfolio.

How is my repayment applied towards the loan dues?

The repayment is applied in the order of interest due till the date of receipt of repayment, principal amount and then for  late fees & penal interest due.

Do I have to pay any fees to the sales & distribution agents of Monexo?

You do not have to pay any fee to Monexo’s sales & distribution agents. If a sales agent demands a fee, please do bring this to our notice immediately.

What is NACH Debit?

NACH Debit is a mechanism to facilitate auto debit of your EMI from your bank account to administrative account.

National Automated Clearing House (NACH) is a service offered by National Payments Corporation of India. To know more click here.

Is it mandatory to give NACH Debit mandate before my application is listed in Monexo?

Yes. You need to submit NACH Debit mandate along with other documents during application process.

How should I submit NACH mandate?

Step 1: Fill the NACH Debit mandate

Fill the below mentioned fields of NACH Debit mandate and affix your signature.

  • Bank account number
  • Bank
  • Either IFS Code or MICR
  • Phone number
  • Email ID
  • Your name/ s against serial number

Step 2: Upload/ Email

Upload the signed and scanned copy of the mandate while you are uploading other documents as part of application process. You may also send the scanned image through email mentioning your Application Number and Customer ID.

Step 3: Mail the mandate

You are required to send the physical copy of the mandate to the below mentioned address citing your Application Number and Customer ID on the rear side of the mandate.

Monexo Fintech Pvt Limited,
1st floor, 174/2,
26th East Street,
Kamaraj Nagar, Thiruvanmiyur,
CHENNAI - 600041

From when my account will be auto - debited?

If your loan is disbursed on or before 15th of a month, then your account will be auto - debited on from 1st of the subsequent month on due date. For example, if your loan proceed are disbursed on 5 April, then your account will be auto - debited from 1 May.

If your loan is disbursed after 15th of a month, then your account will be auto - debited on from 1st of the month after the subsequent month. For example, if your loan proceeds are disbursed on 20 April, then your account will be auto - debited from 1 June.

Can I use a different format of NACH mandate?

NACH Debit mandate format is uniform across India and is determined by NPCI. No change in format is acceptable to NPCI.

What is the process through which NACH mandate will be submitted to my bank?

Once we receive the signed NACH Debit mandate, it is submitted to your banker through NPCI for authentication.

Thereafter, for every EMI, on the due date a debit instruction is sent to your banker through NPCI.

How do I make my loan repayments?

You can make your monthly payments via bank transfer or by setting up automatic monthly payments from your bank account. You now also have the option of transferring payments through UPI.

Any banking fees charged will need to be borne by you. Please ensure your installment payments are in full to the administrative account mentioned below.

Account NameMonexo Fintech - Borrower Repayment Escrow Account
Account Number 10000782323
Account Type Current Account
Bank Name IDFC Bank Limited
IFS Code IDFB0040101
MICR Code 400751002
Bank Address IDFC Bank Limited, Naman Chambers,
C-32,G-Block, Bandra-Kurla Complex,
Bandra East,

For the time being, we do not accept credit/debit card payments for the loan.

What is the amount to be filled in the NACH mandate?

The NACH mandate amount would be the total amount repayable by you(ie. EMI*Total tenor). For example, if your EMI is 4500 per month and the total tenor is 18 your NACH mandate should be filled for 81000. However we will be presenting the NACH mandate every month for the EMI.

What is UPI? How can you make payment through UPI at Monexo?

"Unified Payment Interface" (UPI) enables all bank account holders to send and receive money from their smartphones, without the need to enter bank account information (such as IFSC code or account number) or net banking user id/ password. UPI has been built by the National Payments Corporation of India (NPCI).  

Monexo now provides UPI as an option for you to make your monthly repayments.

  • UPI is hassle-free, simple and funds get credited instantly. UPI's two-factor authentication makes it a safe and secure payment option.

  • UPI option is available to you with most banks, digital wallets, payment apps such as Paytm, Phone Pe, Google Pay and BHIM. If you are not already registered on UPI, you can follow the steps in the next section.

  • You only have to use a virtual address, known as a Virtual Payment Address (VPA) to carry out the payment  transaction.

How can you transfer funds with UPI for your monthly repayment?

If you are an existing user of UPI, you can make your repayments using UPI in this manner:

      • Log on to your banking/payment app that allows funds transfers through UPI
      • Choose the beneficiary’s VPA (Monexo’s VPA) or UPI ID, the amount you wish to pay and remarks.
      • Monexo’s VPA/UPI ID is 9043066699@idfcbank
      • Once you get a confirmation message, do check the payment details to confirm the payment.
      • You need to key-in the MPIN or UPI PIN. You will get a notification that will show whether the payment ‘successful’ or ‘failure’ message.

Important - Please do not share your UPI PIN with anyone. Monexo does not store or read your UPI PIN details and your Monexo customer service will never ask for it.

An example of how you can fill the details is given below:

      • Payee Virtual Payment Address (VPA) or UPI ID - 9043066699@idfcbank
      • Enter Amount - Rs 2000
      • Remarks - Oct EMI for LAI-2000543

You will find these screenshots handy to access UPI on apps such as Google Pay, Phone Pe, BHIM or your banking app.

Please click the link below for the screenshots.


How can you register and start using UPI?

If you are not an existing user of UPI, here are the steps you need to follow to register:

  • Download and install the UPI app: You  can download Google Pay, Phonepe or BHIM, etc from Google Play Store for android or App store for IOS.  
  • Set login and create virtual address: Launch the app after installation and create a profile, the login id and your virtual payment address (VPA). The VPA acts as their financial address and you dont need to remember beneficiary account number, IFSC codes or net banking user id/password for sending or receiving money.
  • Add your bank accounts: There would be an option such as, Add or Link or Manage Bank Account which will then allow you to link your bank account number with the newly created virtual id.
  • Set your M-pin: You need to set a unique M-pin to start transacting.
    • Choose the bank account from which you want to pay using UPI and Mobile Banking Registration/Generate MPIN.
    • If you tap on Generate MPIN, you will receive a One Time Password (OTP) from you bank on your registered mobile number.
    • It will then ask you for the last 6 digits of debit card number and the expiry date of your card.
    • Simply enter the 6 digits of OTP and the MPIN of your choice, followed by a tap or click on submission button.
    • You will then get a confirmation text for your new MPIN.
  • Start transacting: With above process cleared, you are ready to transfer payments.
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What are the fees associated with the loan?

When your loan is funded you will pay a percentage of the loan amount, ranging from 2% to 4% depending on your Monexo rating, as a servicing fee, which will be deducted by the trust company from your loan disbursement prior to depositing the funds in your account.

What interest can I expect to be charged on the loan? How is it determined? How does it compare to loans available in the market?

Monexo is committed to assisting in bringing down the cost of credit to borrowers on the marketplace. The interest rates on the loans available through the Monexo marketplace range from 12% to 30% p.a. for salaried loans. 

We believe that interest rates on Monexo's marketplace are still significantly lower than the market rates for credit cards or unsecured personal loans.

What is APR (Annualised Percentage Rate)?

An Annualised Percentage Rate (APR) enables you to easily compare the cost of credit as you evaluate multiple loan offers. At Monexo, the APR includes the maximum of 30% yearly interest rate and the loan-funding fee of 2% to 4%, which varies depending on the amount of the loan. The fee is deducted from the proceeds of your loan amount, whereas the interest rate is included in your monthly payments during the term of your loan.

All loans feature fixed interest rates and monthly payments, which means that they will never change during the term of your loan.

When do you charge late fee and penal interest?

Monexo proactively reminds you when your payment is due. However every time when you do not make a payment by the 10th of the month, you will be charged a  1000 late fee. Moreover, you will be charged with an additional penal interest of 36% p.a. calculated on a daily basis till the date of receipt of the amount due.

What are the advantages of reducing balance method over a flat rate that most banks or moneylenders use?

Monexo uses a reducing balance method to allocate EMI to principal and interest portions. When you send a payment, you pay interest on the remaining loan balance only and not on the whole loan as done in flat rate method.

A reducing balance interest calculation formula can be represented like this:

Interest Payable per Instalment = Interest Rate * Remaining Loan

In the flat rate method used by many banks and moneylenders, they just apply the same amount to the principal and interest so you pay higher interest over the life of the loan.


Comparison of the two interest calculation methods for a loan amount of Rs 1,00,000 over a tenor of 12 months with an interest rate of 10% p.a.

Flat Rate MethodReducing Balance Method
Total Interest Paid ₹ 10,000 ₹ 5,499
Total Repayment ₹ 1,10,000 ₹ 1,05,499
Comparable Flat Rate Interest 10% p.a. 5.5% p.a.
Savings on Interest ₹ 4,501
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Am I eligible to apply for a Loan against Salaried?

To apply for a Loan against Salaried, you must meet the following three basic criteria.

As an individual, you must:

  • Be 21 years of age or above
  • Have a monthly salary of Rs 15,000 or above
  • Have a valid PAN Card
  • Work experience of minimum 3 months

Note: These are the minimum requirements. All borrowers are subject to Monexo screening and approval process.

I already have a personal loan from another bank, am I still eligible for a Loan against Salaried through Monexo?

Yes. You are eligible for a Loan against Salaried via Monexo as long as you meet the eligibility criteria. The loan amount that you are eligible for will take into account the debt that you already have.

What are the documents required to apply for a Loan against Salaried?

Monexo requires the following documents to process your Loan against Salaried application.

    • PAN Card
    • Latest residential address proof
    • Latest 2 months’ salary slips
    • Latest 3 months’ bank statements / passbook showing your name, account number and salary entries

We wish to obtain, verify and record information that identifies each person who opens an account. What this means for you is that, when you open an account, we will ask for your name, address, date of birth and any other information that will allow us to identify you.

What are the minimum and maximum amount of the Loan against Salaried?

The minimum and maximum amount of the Loan against Salaried are  50,000 and  5,00,000 respectively. These amounts are subject to change.

What are the minimum and maximum tenor of the Loan against Salaried?

The minimum and maximum tenor of the Loan against Salaried are 6 months and 36 months respectively. These numbers are subject to change.

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What is "My First Loan" and what is the eligibility criteria?

We offer "My First Loan" to borrowers who have never taken a loan before. We understand that it can be challenging to get credit from traditional banks if you don't have a credit history. We would like to make credit easily and quickly accessible to you.

"My first loan" offered is Rs 50,000 for a duration of 12 months to salaried individuals.

To be eligible for a "first loan", you need to

  • have a minimum monthly salary of Rs 15,000 that is credited to your bank account. You also need to have a valid PAN and Aadhar ID.
  • provide copies of Aadhar card, address proof, 2 months salary slip and 3 months bank statement showing salary credits.
  • complete verifications as part of the application process so that we can retrieve your bank statement data, income data and Linkedin Profile.

To know more about the borrowing process, go to https://www.monexo.co/in/borrower-faqs

Why do we ask you to connect to your Linkedin profile?

The data we get from a your LinkedIn profile helps us understand your career growth, educational background and earnings potential. We use your LinkedIn data as part of our screening process for reviewing your application form, verifying identity and minimizing fraud.

How does taking a first loan impact your credit score?

With a first loan at Monexo, you are taking your first step to building your credit profile.

  • The monthly repayments done by you are reported to the credit bureau by Monexo.
  • Timely repayments and responsible borrowing behaviour will help you build a good credit score over a period of time.
  • With a good score, it is helpful to get credit in future.

How will "My First Loan" help me build credit?

Getting a new loan gives you the opportunity to repay successfully and build up your credit. If you have never yet established credit – it will improve over time with each monthly on-time payment.

Your credit is all about your history as a borrower. If you’ve borrowed and repaid loans successfully in the past, lenders assume that you’ll do the same in the future. The more and the longer you do it, the better.

Why should I pay on time?

Once you have received a loan, it is important that you pay your monthly instalments on time.

  • Your repayments have a significant impact on your credit score.
  • Any missed payment or defaults will bring down your credit score.
  • Finance companies may decline loans in future or provide a loan at a high rate.

Timely loan payments will help improve your credit score, making you a more attractive borrower. Since your credit score defines your credit health, delayed payments and defaults will bring down your score.