HomeMedia CenterMillennials dominate P2P platform as both lenders and borrowers: LenDenClub

Millennials dominate P2P platform as both lenders and borrowers: LenDenClub

Young and tech-savvy Indians are much ahead of the previous generations when it comes to borrowing or even availing the platform for a new asset class as an investor
Millennials are dominating as the most influential cohort as both borrowers and lenders on Peer-to-Peer (P2P) Lending platforms according to study done by P2P lender LenDenClub.

According to the report by LenDenClub, young and tech-savvy Indians are much ahead of the previous generations when it comes to borrowing or even availing the platform for a new asset class as an investor. Millennials belonging to the age group of 21-30 years were the most active as both borrowers (56%) and lenders (54%) on its platform. This was followed by the cohort belonging to the age group of 31-40 years accounting for 37% in case of borrowers and 33% in case of lenders. India’s silicon city, Bengaluru, topped the chart in terms of people having the highest credit demand. Interestingly, the highest number of lenders too hailed from the tech city of Bengaluru. Other major lending and borrowing markets were Mumbai, Hyderabad, Pune and Chennai, showing a clear dominance of west and south.

Salaried professionals ranging from CXOs to mid-managerial level, topped the chart as investors on the platform. The report further stated INR 1.81 lakhs was the average investment amount on the platform while INR 50,000 to 1 lakh was the most preferred amount among lenders, accounting to ly 50% of the pie in terms of value. Owing to the festival season, November (2020) and December (2020) and February (2021) were the top three months when demand for credit was the highest. Whereas, during Apr-Jun 2020, the demand for credit was the least.

Bhavin Patel, Co-founder & CEO, LenDenClub said “Covid-19 has accelerated digital penetration and uptake across every industry, and the lending sector too, has seen transformation beyond imagination. During the global health crisis, medical emergencies continued to be the top reason for borrowing. Interestingly, millennials also actively participated as investors availing P2P lending as an aspirational asset class offering lucrative returns. Thanks to e-commerce and penetration of new-age technology which has built an all-new tech empowered segment of Indians across tier-II and tier-III cities from where we witnessed fresh bouts of demand.”

CREDIT:
https://bfsi.economictimes.indiatimes.com/news/financial-services/millennials-dominate-p2p-platform-as-both-lenders-and-borrowers-lendenclub/84473742

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.

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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 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.

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

*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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