Peer to Peer Lending: A new Investment Instrument

Mar 15, 2017

The idle money loses much of its sheen in course of time if it is not invested in wealth-creating instruments. A new promising investment instrument in India called Peer-to-Peer Lending (P2P) is fast gaining attraction in the Indian Investment scenario. Money lending for personal use is not new in India but combining money lending with internet technology is ly going to be a game-changer. With ever-increasing internet literacy and equally increasing internet penetration, Peer-to-Peer Lending is on its way to shake up conventional investment tools.

CMany traditional fixed-income investment instruments yield between 7 to 8% p.a. returns and are sometimes even unable to beat inflation. Equities and Mutual Funds require extensive knowledge of the market and are too esoteric for common investors. P2P Lending comes into the picture to bridge those gaps. There are large numbers of persons who do not have much-needed access to capital. The capital required may not be large but they are overlooked by conventional financiers owing to their small capital requirement. Therefore P2P Lending has a huge potential to reach out to those untapped & needy borrowers. This serves two purposes: easy access to capital for borrowers and higher returns to lenders. Lending on a P2P platform such as LenDenClub is much easier, and it reports a weighted average interest rate of 10-12% p.a.*

If you have savings and are looking to multiply your wealth, P2P platform of LenDenClub is the right place to start your investment.

The benefits to lenders or investors from P2P Lending

  1. Lender or investors may use surplus money to generate extra income by lending.
  2. Investors can decide the amount they wish to lend based on the rate of interest.
  3. P2P lending is the right way for an investor to earn passive income regularly.
  4. Investors can fulfill their dream by helping someone at least once in their lifetime.

Any investment is considered good when it allows investors to earn higher returns with an option to minimize risks that too by choice.

Investment on Peer to Peer Lending platforms like LenDenClub wholesomely fulfills the criteria of a good investment.

To know how to start investing in P2P lending platforms please read this article.

*On platform level since 2017.

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