LOANX VEDIKA, RBI & SEBI COMPLIANT, CARE ‘A’ RATED, LISTED PRODUCT
Vedika Credit Capital Ltd is a Non-Deposit taking, Non-Banking Finance Company (NBFC-MFI). The Company was originally registered as a Private Limited Company but was later converted into a Public Limited Company in November, 1995.
It was recognized and re-registered to carry out the business as NBFC-MFI with approval from Reserve Bank of India in 2015 although since 2007 the company is into Micro Finance product like Joint Liability Groups loans and Individual Loans and provide assistance to women borrowers as per RBI regulations.
The company is operating across 7 states (Jharkhand, Bihar, West Bengal, Uttar Pradesh, Assam, Odisha & Tripura).
The current AUM of the NBFC is more than 1000 Cr, with Gross NPA less than 1%
SBI and PNB has tied up agreement with Vedika Capital for Co-lending
LoanX is a regulated, rated, and listed investment option that enables investors to tap into a diversified pool of loans to various individuals, businesses or other entities and receive regular returns. These loans are originated and serviced by an RBI regulated NBFC
This investment instrument is enabled through a process called ‘Securitization’. CRISIL estimates that NBFCs raised 1.8 lakh crore (1 followed by 12 zeros!) via securitisation in FY'23. All of these investments were made by just 100 investors consisting largely of foreign, private, and public sector banks!
LoanX is in the form of PTC and is a tradable listed instrument held in dematerialised form, i.e., it offers a similar experience to buying, holding, and selling a bond. However, ability to find a buyer is not guaranteed by Grip and the investor could expect to hold the instruments until maturity.
LoanX (in PTC format) is an RBI and SEBI compliant,rated instrument, which is managed by an independent, SEBI-registered trustee. The returns in LoanX originate from a pool of loan receivables. The security package of LoanX consists of over-collateralization, cash collateral, and excess interest spread (EIS): Over-collateralization refers to having loans worth INR (100+x) as collateral, against an investment of INR 100. So, if in an opportunity, over-collateralization is 10%, then it has loans worth INR 110 as collateral, against INR 100 investment. Cash collateral is in the form of an upfront fixed deposit by the originator EIS is the difference between the interest amounts received on the pool of loans receivables, and the interest payable to investors
Only the interest payout is expected to be taxed at the marginal tax rate of the individual investor; no tax should be payable on the principal repayment. Appreciation (if any) of the price of the PTC, in case of sale prior to the full tenure, is expected to be considered as capital gain and taxed accordingly. Please do not consider this as tax advice. We urge you to speak with your independent tax advisor.
Yes, RBI and SEBI have mandated KYC requirements for the purchase of the PTCs to prevent money laundering activities