These are exciting time in the financial markets of India. Out of a large number of things that technology has changed for us, the latest disruption from technology is the way we bank. More, specifically the way we lend.
Ever wondered why you get 6-7% on your FD and 2-3% on your savings account while the bank Lends at 12–14–16% on Car loans, Personal Loans? Because the bank needs this “Spread” to keep its branches running, pay staff salaries, pay running expense and of course expand and open new branches. Wouldn’t it be wonderful if you can directly lend to the borrower at 12-16%?
Yes now you can lend like a bank. How? Introducing India’s Top Peer 2 Peer Lending platform – Lenden Club, Monexo & Faircent
What is P2P lending?
P2P lending is a new age investment option where you lend your money to rated borrowers to get high returns and monthly income. Lenders can earn returns as high as 12 to 16% p.a. and also get monthly income in form of EMI’s. It is a new concept in India but in countries like US, UK, Canada and China this is a huge market.
Is it Legal in India
Yes. P2P lending is regulated by the Reserve Bank of India (RBI) as of 4th October 2017.
Features –
- Vetting of Borrowers – The platform vets all the borrowers thoroughly and shows you all their financial details. The borrowers home and office address are physically verified. Borrowers risk rating is done using fully automated credit evaluation.
- Choose Whom to Lend – As a lender, the borrowers are profiled according to their risk rating. You can choose to lend according to risk profile of the borrower. The borrowers are differentiated in Minimal Risk, Low, Medium, High, Very High and Unrated categories. The RoI increases with increase in risk.
- Minimize NPA’s by micro funding – A lender can give out loans in small denominations of Rs 500 or more to large number of borrowers. This minimizes your NPA risk and also gives you an higher RoI. It is advisable to fund atleast 100 borrowers to reduce the portfolio risk.
- Short and Long Tenure Loans – The loan maturities are from 3 months to 3 years. You can filter out the loans based on maturity as per your choosing.
- Reinvest Monthly EMI’s using Auto-Invest facility – A lender can also reinvest their monthly EMI earnings to fund more loans in order to get extra RoI. Reinvesting has helped lenders increase returns.
Investment Amount – Minimum Rs 25,000 and Maximum Rs 50 Lakhs per PAN Card.
Eligibility – All Individuals, Non-Individuals (HUF, Partnership, Companies, etc) and NRI’s can also invest
The whole process of registration is online. You can follow this link for registration on the platform.