The investments made with Thomson Investments need to go through various processes before reaping the fruits. Each investment is split and invested in various loans to decrease the risk of loss.
Thomson Investments have collaborated with various microfinancing companies. The prospective borrowers approach us through these platforms through application which states in detail the amount required, purpose of loan and the interest that can be paid by the borrower.
After preliminary screening, if the ROI and the loan amount criteria is met, background and credit verification is done so as to ensure the authenticity of the applicant. Our analysts are experienced in accessing the loan repayment capability of an individual/enterprise. This help Thomson Investments to reduce the risk of bad debt.
Once credit-worthiness evaluation is performed,the fund mobilization process begins. As the interest rate increases, the risk factor also increases, so we allocate the funds from the investors towards the loan based upon their choice of risk exposure. If there is a scarcity to fund the loan amount from investors, the borrowers are not affected as Thomson Investments give credit as soon as it approves the loan application.
As soon as the funds are mobilized, Thomson Investments intimate the respective finance institution and funds are transferred according to their instructions. The following paperwork and procedures are done by the microfinance company and loan is eventually released to the borrower
The repayment by the borrowers are collected periodically. Each loan funded by Thomson Investments go through two levels of verification, one by the microfinace platform and the preceeding one by Thomson Investments team. Despite dual verification as lending inherently involves risk continuous monitoring is required to avoid bad debts. In case of arrears appropriate measures are taken by imposing fine or suing so as to protect the investors' fund and discourage such habits. But if there is genuine reason behind failure of repayment, the borrower is given relaxation after due deliberation and consideration by Thomson Investments and investors whose money is involved.
The repayment from the borrower is split between the investors who contributed to the loan based on their contribution and scheme.