Peer-to-peer lending, also known as P2P lending, is one of many ways to manage liquidity for your company or personal usage. P2P operates as an online platform allowing lenders to invest your money and for borrowers to procure funds for their usage. Borrowers can get funds with ease, while lenders can earn better returns vis-a-vis bank savings or investment avenues.
The crowd-funding mechanism is the essence of peer-to-peer lending. Majority India P2P lending platforms are NBFC fintech companies (Non-Banking Financial Companies). The P2P model, in contrast to that of conventional banks and financial institutions, is a contemporary credit model to address present day business credit needs.
LenDenClub is an eminent example that offers P2P lending. LenDenClub app is supported by artificial intelligence. Here, you will invest your funds for a predetermined duration and will receive the entire investment back at the end of provided tenure, along with compounded earnings.
P2P lending provides a forum for collecting funds from private individuals, high net worth individuals, and Hindu undivided families (HUFs). P2P lending can rightly be referred to as uberization and democratization of the lending segment.
With LenDenClub’s P2P business model, you can invest in their P2P lending product – ‘FMPP’ short for Fixed-Maturity P2P. The loans are placed automatically among a large pool of borrowers through AI-based infrastructure. Additionally, lenders also benefit from comprehensive credit history checks of the borrowers. The entire process from investments to distribution to maturity is seamless and automated. This provides investors with a comfortable investing experience..
Following are essential prerequisites for the P2P platform and as a money lender, you should always look for them.
The following steps will help you make your first FMPP investment with LenDenClub:
While the process seems pretty smooth, let’s see what goes on behind the scenes and how investing with LenDenClub reduces the hassles of what otherwise could have been a time-consuming process:
Once your funds are placed, you can stay on top of your investments with our simple portfolio dashboard. This will provide you insights on your returns, your portfolio worth, the remaining time-frame and maturity among other details. Lenders have the freedom to lend up to as high as ₹50 lakhs with LenDenClub’s state-of-the-art infrastructure.
The entire investment process from account creation to starting your investment journey is free and there are no hidden costs lurking behind the scenes that catch you off-guard. So you can rest that your money works for you!
At the end of your investment tenure, your money gets returned to you along with the interest amount that you have earned over the tenure. Then, it’s your call whether you want to put your money to good use again and reinvest or use them against your financial goals that you had set.
ProTip: If you have multiple goals with different time-frames, you can always choose to create multiple FMPPs that help you address such different timelines easily. All you FMPPs individually generate up to 10-12% returns p.a*. taking you to your destined goal one step at a time.
P2P lending is a boon for investors who otherwise get constrained with low-yield investments options. The non-market linked asset class definitely generates above-average returns than its peers providing a level playing field for small and large investors alike.
A digitalized ecosystem’s transparency makes it simpler for new-age investors to experiment with their investment. They could explore P2P as a high yielding investment avenue with very little capital requirements. LenDenClub’s revolutionary FMPP investment has greatly reduced the turnaround time for investors to be able to create their investments. It’s instant! The cherry on cake of course lies with high return within a low to medium time-frame in a highly regulated environment. As the saying goes, to avoid all eggs in one basket, FMPPs create a win-win situation for investors and borrowers alike. So explore the trending opportunity today. Create an FMPP today!