For Salaried Employees only
THESE TERMS AND CONDITIONS ARE THE TERMS UPON WHICH YOU WILL PARTICIPATE IN THE MONEXO PLATFORM IN THE EVENT THAT YOU ARE ACCEPTED BY MONEXO AS A LENDER
IF YOU DO NOT ACCEPT ANY OF THESE TERMS, PLEASE DO NOT PROCEED WITH THE REGISTRATION PROCESS
The User Terms that you have already accepted when accessing the Website shall continue to apply during the registration process with Monexo and, should the registration be successful, whilst you use the Website as a Member.
Without prejudice to the generality of Clause 2.1:
Details of any potential Transaction posted on the Website will not amount to an offer or solicitation of any nature by Monexo.
Any information, projection or assumption included on the Website or generated by Monexo is not intended to give you any legal, financial, taxation or other professional advice.
Should you propose to lend any money using the Website, you are strongly advised to obtain appropriate independent professional advice before proceeding.
No warranties or representations (whether express or implied) are made by Monexo or anyone connected with Monexo (including their officers, agents, employees, affiliates and/or advisers) concerning the completeness, accuracy or reliability of any matter included on the Website or any other information provided by Monexo to you or to any Member in connection with any potential Transaction or any Monexo product or service.
Monexo is not responsible for any delays or loss of or corruption of data as a result of either the use of the Website by you or your communications over the internet with Monexo, which are entirely at your risk. We will not accept any responsibility for any losses, claims or damages of any kind, whether direct or indirect or special or consequential or otherwise howsoever arising in relation to the foregoing.
Monexo is not in the business of lending money or making loans but rather is a platform permitting prospective borrowers and lenders to directly enter into loan transactions with one another as well as carrying out risk assessment and support services to prospective borrowers and lenders.
No Members are permitted to use the Monexo platform to provide for interest rates deemed to be excessive under the prevalent laws in India or which are otherwise unenforceable at law.
Monexo is not a Non-Banking Finance Company, as per the existing regulations of Reserve Bank of India and its products and services are not regulated by Reserve Bank of India at present. Monexo is not operating a Portfolio Investment Scheme as defined under the regulations of Securities Exchange Board of India (SEBI) and Members will retain discretion over the Funds described in the manner in these Terms.
Only those Members who accept these Terms shall have the ability to participate in a Transaction.
A company may register as a Member if
The company is incorporated under the Indian Companies Act 1956/ 2013 and has its registered office in India;
The company holds valid charter documents, including but not limited to, its Memorancdum of Association, Articles of Association and Certificate of Incorporation;
The company has a valid bank account in India; and
The company holds a valid Permanent Account Number (PAN) card issued by the Government of India.
An individual may register as a Member if:
The individual is a resident of India as per the Foreign Exchange Management Act, 1999 (FEMA)
The individual must have a valid identity and residence proof
The individual mut have a valid bank account
The individual must have a vaild PAN card issued by the Government of India.
By accepting these Terms as a prospective Lender, you warrant that you are an "Approved Person", namely, that you are:
Eligible to lend in India and resident in India as per FEMA and also a citizen of India or in the case of a corporation, incorporated in India ;
A person above the age of twenty one (21) years ;
A person who is not involved in activities which fall under the scope of anti money laundering and counter terrorist financing legislation and regulations;
A person who is either a salaried employee, self-employed person, independent professional or is engaged in any other occupation or profession for profit or otherwise but whose business is not that of money lending nor a person who shall be considered as a Money Lender as per the various Money Lender's Regulations in India (save where you are registered under the Money Lending Regulations applicable to the place of their residence/business or are exempt from registration thereunder);
A person who is not prohibited by any laws applicable to them from participating in any of the products or services offered by Monexo;
Monexo has the right to either (i) refuse an application of any person to become a Member or (ii) to require that an existing Member ceases to be a Member, in each case without giving any reason and without incurring any liability.
Any instruction received from your nominated email account shall be deemed to bind you without any further duty of enquiry on Monexo. This provision shall apply to individual, joint and corporate Members.
If you are a "lender" within the purpose of any Money Lenders Regulation, you shall disclose the same to Monexo, and provide details of your license as and when required by Monexo. If you fail to disclose the above details, Monexo will have the right to immediately suspend or terminate your Membership.
By applying to be registered with Monexo you agree and confirm that:
All Funds paid by you will be (a) paid by you from a bank account in India in your name in Indian Rupees; and (b) deposited and held in one or more bank accounts operated by the Administrator; and
Any sums that any Borrower repays under a Transaction shall be deemed by these Terms to be directed by the Relevant Member to be paid to the Administrator without the Borrower having any further obligation concerning the application of those monies.
For the purposes of these Terms, the "Administrator" shall be such person as is appointed by Monexo from time to time to deal with all Funds. At no time will Monexo hold any Funds save as provided at Clause 5.9.
For the time being and until further notice, the Administrator will be IDBI Trusteeship Services Limited and any changes of Administrator will be posted on the Website.
Monexo confirms that it will, at all times, instruct the Administrator to keep both:
The Funds segregated from the Administrator's own accounts;
Records showing clearly that the Funds do not belong to Monexo or the Administrator; and
To procure that any Funds that are not Offered Funds or Accepted Funds are repayable to the Member within seven (7) working days of being so requested by that Member
It is a condition of the Administrator agreeing to act in such capacity that you confirm to Monexo by these Terms for the benefit of the Administrator that:
You will have no right of recourse against any monies held by the Administrator save only for your Funds; and
Save for the Administrator's compliance with these Terms, the Administrator will have no further obligation to you.
In the event that Monexo is unable to continue to operate the Platform, then Monexo will procure that, under its agreement with the Administrator, the Administrator will use its reasonable endeavours to provide a basic service to receive payments in respect of then-subsisting Transactions subject to the payment to the Administrator of like fees as would otherwise be payable to Monexo pursuant to these Terms. However, in such circumstances, the Administrator shall not be involved in the creation of any new Transactions and, in respect of Funds not committed to a Transaction, these shall be returned to the relevant Member as soon as is reasonably practicable.
Monexo will endeavour to ensure that both: (i) the amount of Funds held by the Administrator belonging to each Member and (ii) the identification of which Funds are the subject of a particular Transaction, in each case as advised by Monexo to the Administrator, are both accessible by the Members on the Website and are updated on the Website at least on a regular basis provided that neither the Administrator nor Monexo shall be liable for any delay in updating such information
Monexo will send you emails from time to time advising you of the amount and status of your Funds based on the books maintained by the Administrator and, unless you raise an objection by email to Monexo within 30 days of being so informed by Monexo, you will be deemed to have accepted the contents of the advice sent to you.
In the event that an Administrator is unable (whether due to insolvency or other incapacity) or unwilling to perform its functions then, insofar as it is able under Indian law, Monexo will perform the function of the Administrator pending the appointment of another Administrator. Should Monexo be otherwise unable under Indian law to so act, then Monexo shall endeavour to appoint an alternative Administrator and shall not be responsible for any losses to Members pending such a new appointment.
Without prejudice to the generality of any other provision in these Terms, neither Monexo nor the Administrator shall have any obligation to provide any services where an event of force majeure or other circumstances beyond their control prevents either or both of them from performing their services for so long as such event is outstanding.
Monexo will from time to time publish Screening Grades on the Website relevant to a prospective Transaction together with the proposed Loan Period and the amount of funding sought by the relevant Borrower ("Target Funding") who shall not be identified by name. This publication will also specify either:
The interest rate applicable to that prospective Transaction ("Fixed Interest Rate") which will be within Monexo's then applicable range of interest rates for such Screening Grade; or
An interest rate requested by a Borrower for that prospective Transaction ("Offered Interest Rate")
And the date upon which that prospective Transaction is published on the Website is referred to as the "Offer Date".
If you wish to participate in either: (i) a prospective Transaction with a Fixed Interest Rate; or (ii) a prospective Transaction with an Offered Interest Rate, then you may have the opportunity to do so by completing the relevant section on the Website, which will require you to both:
Specify the amount of Funds that you may wish to commit to that prospective Transaction ("Offered Funds"), which amount must (a) not exceed the Funds belonging to you (excluding any fees due to Monexo) (b) be held by the Administrator in cash; (c) not exceed the amount of Target Funding then outstanding for the prospective Transaction as advised by the Website; and, (d) be a multiple of such amount as Monexo may prescribe from time to time on the Website; and
Press a "confirm" button provided at the relevant section of the Website ("Confirmation").
Should you indicate your Confirmation to Monexo for any prospective Transaction in accordance with Clause 6.2 within the Offer period , then this will be an irrevocable instruction by you to Monexo to offer the Offered Funds to the relevant Borrower for the purposes of that prospective Transaction subject, however, to the terms of Clause 7. Please note that, having pressed the Confirmation in respect of a Transaction, you are not permitted to withdraw your offer of the Offered Funds to participate in the prospective Transaction until after the expiry of the Offer Period and, if you have by that time become a Relevant Member in the circumstances described at Clause 7, the Offered Funds will be lent to the Relevant Borrower and the Offered Funds will not be returned to you even if you so request.
AutoInvest: Lending Members shall also be able to utilise the AutoInvest feature of the Website/ Platform in the following manner:
Lenders can choose the Monexo AutoInvest feature which allows Lender to execute their lending criteria automatically by the Platform without any manual intervention.
Once the AutoInvest feature is turned ON by Lender, his Offered Funds available in Administrative account is queued up for lending to various Transactions in the marketplace of the Platform.
The Monexo AutoInvest engine runs daily at a prescheduled frequency and funds the loans per AutoInvest lending criteria defined by Lenders.
The Completed Transactions shall be regulated as per clause 7 below.
Lenders are required to accept the Autoinvest Terms and Conditions And input their lending criteria to use the AutoInvest feature.
If Monexo shall:
Receive Confirmations of Offered Funds of more than 60% but less than 100% of the Target Funding at the end of the Offer Period for the prospective Transaction, then you agree that such Transaction shall become legally binding and the Administrator will be immediately authorised to release the Offered Funds to the Borrower on the terms set out at Clause 7.2;
Not receive Confirmations of at least 60% of the Target Funding by the expiry of the Offer Period, then the Offered Funds shall not be committed to that Transaction; or
Receive Confirmations of 100% of the Target Funding at any time during the Offer Period, then Monexo will, endeavour to, but shall not be obliged to, process all Confirmations on a first-come-first-served basis, those chosen Offered Funds being "Accepted Funds" and you agree that:
Any Accepted Funds shall immediately be treated in a like manner to that set out in Clause 7.1 (i) in respect of a legally binding Transaction; and,
Any Offered Funds that do not become Accepted Funds shall be treated in a like manner to that set out at Clause 7.1.(ii).Any Member whose Offered Funds form a part of or the whole of any Transaction shall be referred to, in respect of that particular Transaction, as a "Relevant Member". Each Relevant Member shall have been deemed to have made a separate loan to the Borrower:
In an amount of the Offered Funds;
For the Loan Period which shall have been deemed to have commenced on the Drawdown Date;
At the Fixed Interest Rate or Offered Interest Rate (as applicable); and,
Subject to the Borrower Terms & Conditions.
No Guarantee: Monexo does not provide any guarantee :
That you will receive a Loan request as a result of posting a listing; or
That your money will be committed in a Borrower's loan as a result of you confirming an Offered Fund;
That you will receive any rate of return, or any minimum amount of principal or interest on any principal or interest at all;
You are recommended to fully acquaint yourself with the Borrower Terms & Conditions before committing any Offered Funds under these Terms.
By becoming a Member you agree that you will have no right, in respect of any Transaction in which you participate, to be informed of the identity of any of (i) the Borrower; (ii) any other Relevant Member; in each case save in accordance with Clause 8.3.
In the event that the Borrower is in arrears of any payment for more than thirty (30) days, Monexo is irrevocably authorised by the Member to refer this matter to a collection agency of Monexo's choosing and, in so acting, Monexo will be the agent for each Relevant Member.
In the event that the collection agency referred to at Clause 8.2 is unable to recover any of the claimed sums from the Borrower within ninety (90) days of their appointment, any Relevant Member ("Exiting Member"), can elect in writing to Monexo that Monexo shall deliver up to that Relevant Member details of the identity of the relevant Borrower and other information which are known to Monexo.
In the circumstances described at Clause 8.3, Monexo shall have no further responsibility in respect of the matter insofar as it relates to the Exiting Member's participation in the Transaction and the Administrator shall be instructed to remove the Transaction from its records insofar as it relates to the Exiting Member, in each case without further claim by the Exiting Member against Monexo or the Administrator.
In addition to the other limitations in these Terms, the Member specifically confirms that:
Monexo conducts Screening Grades based on information known to it. Whilst Monexo will take reasonable steps to verify such information, (a) Monexo makes no warranty that the Screening Grades accurately reflect any matter relating to the Borrower and/or the veracity of any information that Monexo obtains from the Borrower and (b) Monexo is not making any representation concerning the Transaction and/or any information that it has derived from the Borrower and the Member accepts and confirms that (i) there is a risk that the Screening Grade may be incorrect and (ii) it should not rely on the Screening Grade or other information provided by the Borrower to Monexo alone in committing any Offered Funds and (iii) Monexo shall have no liability in respect of any losses resulting to the Member from any incorrect or misleading information being given in respect of any Transaction.
You will be responsible for all legal obligations that may apply anywhere in the world in relation to any Transaction in which you participate including but not limited to any taxation filings and payments to which you may be subject.
It is a condition of being a Member that you agree (i) to be responsible for all of Monexo's costs and disbursements in relation to any Transaction in which you participate to the extent of your participation and (ii) in respect of such Transaction, that any such fees due to Monexo may be deducted from your Funds
Details of Monexo's costs appear in the Schedule A to these Terms but may be subject to revision by Monexo in its absolute discretion and from time to time. In the event that such revisions are made, Monexo will post a notice of revised costs on its Website prior to such revisions taking effect.
In the event of any conflict between these Terms and the User Terms, these Terms shall prevail.
All notices delivered to you under these Terms shall be sent to the latest email address that Monexo has on its records for you. Such notice shall be deemed to be sent at the time of dispatch.
Any changes to these Terms ("Changes") shall be posted on the Website not less than 30 days prior to their adoption. Unless you request the Administrator to return all Funds to you that are not then being applied for Transactions prior to the date of adoption of the Changes, you will be deemed to have accepted those Changes.
For the purposes of any time limitation in these Terms, time shall be of the essence.
These Terms may be translated into other languages but, in the event of any conflict between versions, the English language version shall prevail.
Governing law - This Terms contained herein shall be governed by and constructed in accordance with the laws of India subject to the exclusive jurisdiction of the courts of Chennai, Tamil Nadu, India.
Dispute Resolution - If any dispute arises between you and Monexo during your use of our Website or period of Membership thereafter, in connection with the validity, interpretation, implementation or alleged breach of any provision of these Terms, the dispute shall be referred to a sole Arbitrator who shall be an independent and a neutral third party identified by Monexo. The place of arbitration shall be Chennai. The Arbitration & Conciliation Act, 1996, shall govern the arbitration proceedings. The arbitration proceedings shall be in the English language. You are solely responsible for your interactions with any other Member (even to the extent prohibited hereby) or any Borrower and any disputes that may result from such interactions. Monexo reserves the right, but has no obligation, to monitor disputes between you and such persons.
Monexo may assign any of its responsibilities/obligations to any other person without any prior notice to the Lender at its sole discretion. However, you shall not assign, sub-license or otherwise transfer any of your rights or obligations under these Terms to any other party, unless a written consent is taken from Monexo.
Waiver - Failure by Monexo to exercise any right or remedy under these Terms does not constitute a waiver of that right or remedy.
Force Majeure - Monexo is not liable for failure to perform any of its obligations if such failure is as a result of Acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalisation, government sanction, blockage, embargo, labor dispute, strike, lockout, robbery, theft of data or any interruption or any failure of electricity or server, system, computer, internet or telephone service.
Interpretation - In this Lender Terms, unless the context otherwise requires references to recitals, clauses and sub-clauses are to recitals, clauses and sub-clauses of this Terms; headings are inserted for ease of reference only and are not to be used to define, interpret or limit any of the provisions of this Terms; references to the singular number shall include references to the plural number and vice versa; words denoting one gender include all genders; any reference in this Terms to a statutory provision includes that provision and any regulation made in pursuance thereof, as from time to time modified or re-enacted, whether before or after the date of this Terms; and any reference to a time limit in this Terms means the time limit set out in the relevant clause or Sub-clause or such other time limit which may be mutually agreed by the parties in writing.
|Fee Type||Definition||Amount Payable|
|Application Fee||Fee payable by a prospective lender at the time of registration of his/their application||1500|
|Loan Servicing Fee||Fee payable at the time of crediting any payment/ repayments by borrowers to your Account||2.5% of the payment / repayment|
|Exit Fee||Fee Payable at the time of withdrawal of money by you from the Administrator Account||0.10% of withdrawal|
|Collection Fees||Fees payable by you to Third Party Agencies engaged by Monexo to assist in the collection of your monies from defaulting borrowers. This fees is payable through Monexo||Variable and your proportionate share of the fees paid/payable to third party agencies|
The above mentioned fees are exclusive of taxes. The Member shall be bound and liable to bear, pay and discharge all taxes including service tax, statutory and other liabilities, cess, duties, fees, etc. imposed by the relevant statutory and local authority. The Lender shall also deduct tax at source (TDS), if applicable, and shall provide the TDS Certificates or any other document evidencing the taxes deducted at source by the Member from the payments made to Monexo as and when required by Monexo.
Last modified on: 30th June 2016
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