HomeBlogIndustry NewsHow P2P Platforms Have Benefited From COVID-19?

How P2P Platforms Have Benefited From COVID-19?

These un circumstances have not left everyone in doubt. There is a segment of investors who are happy during this lockdown time; stock market investors and P2P investors. COVID-19 has brought economic concerns in the world. But that’s not the worry since, it has generated innumerable opportunities, not just for P2P platforms but for P2P investors too. 

Diversification is the key

Spreading investors’ portfolio across hundreds and thousands of loans is essential and this aids advantage as different products and borrowers perform differently during an economic crisis. This concept helped protecting the ultimate interest of the investors and so that their returns. Though returns on investments have taken a hit across most asset-class, investments in P2P lending, continue to hold ground. Platforms that are compliant with the regulations have a sensible underwriting mechanism, established business practices, sound and secure tech-stack and an efficient workforce which will surely emerge stronger on the other side of this trial. 

P2P lending was rose to be resilient to economic turmoil and a good investment with returns. The pandemic is an important moment for the industry, to prove that money-lending offers solid financial returns when it is made through the right platform.

Modernistic FinTech Approach  and Transparency to the Rescue 

While initiatives and processes were being implemented to ensure that the demand and collection side of the business works smoothly, supply has not been a real concern. Investors continue to add money to their escrow account and fund online loans. This was all because of the highest level of the transparency maintained on the platform. The investors are aware of the collections of money, their returns and delayed borrowers. The confidence imposed by investors and partners is encouraging during such a difficult time. The modern fintech approach aka digital focus helped the platform continue all operations during this pandemic time without difficulties. E-verification where geo-tagging, location mapping, video interviews and selfies are used, instead of physical verification of borrowers is a time saving, cost-efficient and contact-less process that is here to stay. The advantage of  P2P lending over conventional financial institutions is that it does not require any physical interaction. Especially, during such times it is extremely considerate and advantageous for the customers to take into account P2P lending option. 

This is where the new-age fintech took advantage of the resources and time they had invested in developing an online infrastructure. P2P lending has adopted digital models such as e-signature, e-verification, e-mandate, API based data integration, blockchain and machine learning to create an ecosystem that enables fully contactless financial transactions. It is likely to rise faster than most in the post-COVID-19 era. The aim is to celebrate and encourage responsible debt management practices that will enable borrowers to access fast and low-cost credit even in the post-COVID-19 era from the digital investors Then the debt will be truly democratised.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

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