Lend Money Legally for High Interest in India

high interest

Do you ever wonder if there are more investing options than traditional ones such as fixed deposits and provident funds? They’re safe, but they don’t give enough returns, let’s face it. Don’t worry, we’re about to explore the new world of money lending! 

In a country where banks have dominated the lending world, there’s a new wave of Indians eager to step into the role of money lenders themselves. With the promise of higher returns, this trend is catching fire. 

But here’s the kicker: How exactly can you legally become a money lender in India? 

Let’s explore the various options available for lenders looking to dip their toes into the waters of money lending!

12% Return

Different Options For Money Lending in India

1) Lending Money to Family or Friends

When it comes to lending money, we usually turn to those who are closest to us. We naturally trust our family and friends, we know their intentions when they ask for financial help. And most of the time, our trust pays off. So, it’s common to lend money based solely on that trust, without any formal agreement.

But here’s the catch: even when dealing with family and friends, lending money without doing paperwork can lead to big problems. Over time, misunderstandings can come up, this leads to strained relationships. To sidestep this potential minefield, one must create a legally binding agreement, like a promissory note or loan contract.

Here’s what you’ll want to include:

Names and addresses of both parties

The amount borrowed

Any agreed-upon interest rate

The timeline for repayment

Any other important repayment terms, like specific dates for payments

2) Investing in Enterprises

Have you ever thought about lending your money to a business? It could be a cool new startup, a tech service company, or someone from your neighborhood with a coffee joint. Sometimes, putting your money into a business can feel safer than lending money to friends or family. You can do a proper analysis of their business plan, financial statements, and future goals to understand how profitable they might be. 

With the Indian economy booming, new startups are coming up every day, providing lending opportunities. Just imagine investing early into a hot startup and watching your investment skyrocket over time. 

But let’s be real: putting your money in startups is risky and it’s a rollercoaster ride. There is nothing in between, it could either make you very rich or leave you with a big fat zero.

If you are not planning to put your money for long-term in a startup, you can still help them by lending them money for a short period. It’s like giving them a little financial boost without tying yourself to their success forever.

3) Lending money on P2P Lending Platforms

Have you ever heard of P2P lending? 

It’s the best place to lend your money if you want to avoid market risk or don’t want lower returns of a fixed deposit. 

In P2P lending, you can lend your money to individuals and earn returns. It’s like being your banker but without all the hassle.

When you lend your money on a P2P platform, your money can be used to fund various needs, helping individuals with personal loans. And the best part is that you’re not alone, P2P platforms pool funds from multiple lenders, spreading out the risk and making it safe for everyone. 

At LenDenClub’s FMPP, you can get started with as little as ₹500 – yes, you read that right! Plus, LenDenClub’s AI-based system diversifies your investment across multiple loans, reducing your risk even further. It’s like putting your money to work in multiple places at once, increasing your chances of high returns.

Lending in FMPP is a smart way to grow your wealth. Ready to dive in and become your own money lender? Let’s make it happen! Lend Now

Let’s Talk About Risk 

You cannot avoid risk, even when you lend to the most promising company in the world. The secret of a successful lending journey lies in minimizing the risk. LenDenClub’s hyper-diversification and thorough screening of loan requests helps you mitigate your credit risk effectively. Learn more: How safe is P2P lending?

Get an idea of other investment options by reading about the best investment plan for the middle class.

Why should you lend your money in P2P? 

A peer-to-peer lending model, or P2P lending, connects verified borrowers seeking personal loans with lenders seeking higher returns. Borrowers are listed on P2P lending platforms, and lenders lend to them. 

There is a lot of flexibility for lenders when it comes to lending small amounts to multiple borrowers. In India, peer-to-peer lending has gained significant traction as an attractive lending option. After recognizing its potential, regulatory bodies like the RBI have introduced regulations to facilitate safe operations.

When it comes to top-tier platforms for P2P lending, LenDenClub stands out as a renowned choice. As India’s largest P2P lending platform, LenDenClub serves as a lending marketplace where lenders and borrowers converge for secure transactions. It facilitates mutually beneficial deals and ensures smooth loan repayments.

LenDenClub offers three distinct lending plans tailored to diverse financial goals:

  • Lumpsum Plan: Ideal for long-term wealth creation.
  • Monthly Income Plan: Designed for investors seeking monthly interest earnings.
  • Manual Lending Plan: Allows lenders to lend based on their preferences and criteria.

With its user-friendly interface and comprehensive lending options, LenDenClub provides a reliable platform for individuals looking to engage in P2P lending while achieving their financial objectives.

In recent years, P2P lending has experienced significant growth, emerging as a robust industry. Whether you are seeking investment opportunities or financial security for life’s uncertainties such as job loss or retirement, P2P lending is a great option. Invest with LenDenClub and enjoy consistent returns every month.

In The End

Among LenDenClub’s many strengths are its innovative approach, strategic partnerships, regulatory compliance, customer-focused approach, commitment to financial inclusion, and continuous expansion. LenDenClub will play a significant role in shaping the trajectory and progress of the industry as it grows.

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



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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 lending simple interest. 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 lending 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’ lending amounts.

*This is an annualized yield and is subject to the maximum FMPP tenure, which is 5 years. P2P lending is subject to high risk and may cause an entire loss of principal.

*P2P lending is subject to risks. And lending 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 simple interest received by lenders

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