RBI Approved P2P Lending Companies

rbi approved p2p lending companies

Technological advancements in digital security (like blockchain and smart contracts) have not just facilitated secure payments but also opened the doors to secure P2P lending online. No wonder there are countless P2P platforms today where users can directly connect for their funding and investment needs.

Did you know that the P2P lending market is forecasted to grow at a stellar rate of 21.6% (2021-26)? With the Indian Government promoting cashless transactions and technologies, the online lending scene is evolving for the better.

However, it is important to know that to realise P2P lending at its fullest and safest potential, you need to select platforms that are RBI-approved. Let’s understand why and have a look at the RBI-approved P2P platforms.

Explore: Best P2P Lending Platforms in India

P2P Lending – Overview

P2P lending is a mechanism where the money lender transacts directly with the borrower without any human intermediaries. There is no involvement of any financial institution in the middle either, facilitating a direct relationship between the lender and borrower.

This method of lending is popular because it allows better returns on investments made as compared to fixed deposits and other traditional forms of savings.

Check Out: RBI P2P lending guidelines

In the digital world, there are several P2P platforms where borrowers and lenders can create an account to transact with each other. The security of these transactions is ensured using modern encryption technology and even blockchain and smart contracts.

Why is it Important to Consider RBI Approval for P2P Lending?

P2P lending comes with a certain amount of risk, given that the lender needs to know that a borrower would follow through on their commitment. Selecting a P2P lending platform that RBI regulates helps to ascertain that there is some level of accountability present in the entire process.

Several mandates ensure that lenders don’t have to face undue risk because of defaulting borrowers:

  • RBI mandates that the NBFC-P2P platform should have a minimum owned fund of ₹20 million to get approval.
  • There is an investment cap of ₹50,000 towards a single lender and of ₹10,00,000 at any time for any lender.

RBI supervises the process, helping raise the creditworthiness of the borrowers and preventing defaults and frauds. P2P lending is, therefore, safer with platforms that are RBI-approved.

Top RBI Approved P2P Lending Companies

Some of the top-performing P2P lending companies in India, like LenDenClub and LiquiLoans, have already made the headlines for their high returns and relatively safer investment environments.

Below are the top 8 P2P lending platforms registered with RBI that have a good track record.

1. LenDenClub

LenDenClub ranks at the top of the P2P lending roster owing to its reliable mechanism and a trustworthy customer base of over 91 lakh customers. The platform has helped invest over ₹12,000 crore to date under a variety of mechanisms like lumpsum investment, monthly income and more, with a high return rate of 12% p.a. since launch.

2. Liqui Loans

LiquiLoans is another excellent option to consider for P2P lending, with over 1,32,000 investors already on board. The platform has helped disburse over ₹3,700 crore in investments with a 100% success rate.

This platform is supported by a partner ecosystem with upGrad, CRED, Razorpay, and more. The platform helps mitigate risks through fund diversification across 200+ borrowers.

3. India P2P

IndiaP2P is one of the most popular P2P lending platforms in India that offers returns of up to 16% per annum. The platform has options to set up monthly earnings, passive income, and more. The performance of the funds is predictable on this platform, helping mitigate the risks.

The best part is that it also offers minimum investments starting at ₹5,000.

IndiaP2P is one of the most popular P2P lending platforms in India that offers returns of up to 16% per annum. The platform has options to set up monthly earnings, passive income, and more. The performance of the funds is predictable on this platform, helping mitigate the risks.

The best part is that it also offers minimum investments starting at ₹5,000.

4. Faircent

Faircent is the pioneer of P2P lending in the country, being the first RBI-approved lending platform in India. The platform provides return rates of up to 12%, approving approximately ₹435 lakhs of loans every seven days.

The borrowers can enjoy interest rates as low as 12% on Faircent. The platform also displays the current loan deficit, allowing borrowers to make informed decisions.

5. Finzy

Finzy is a unique P2P lending platform that allows you to customise your cashflows using handy tools on the dashboard. You can select your interest rates, commitment period and other aspects to generate the desired cash flow.

The platform also has handpicked borrowers with a low possibility of risk or default, enabling safer investments for the lenders.

6. i2iFunding

i2iFunding is another popular P2P lending platform in India which can get you returns of up to 30%. The platform currently has several active loans of tenures ranging from 4 months to 6 months with a return rate of up to 16%.

The collection and recovery process has legal support for the investors.

7. 12% Club

In partnership with companies like LenDenClub, LiquiLoan and Hindon Mercantile Limited, the 12% Club is a P2P platform that allows lenders to enjoy 12% returns and borrowers to get access to funds at 12% interest.

It features a 0% margin and no joining fees or hidden charges. There are daily interest credits and instant withdrawals.

LenDenClub: Your Trusted P2P Lending Platform

P2P lending may carry some risks, but the fact that it generates stellar returns overshadows those inhibitions. If you look at it that way, every investment has its own risks – in P2P lending, the lender is connected directly to the borrower, providing a good visibility of fund status.

With LenDenClub, the reliability of P2P investments is drastically improved because of a wide and expanding base of customers who have rated it 4.2 on 5 stars on Google. The platform allows for a variety of investment options in P2P, including monthly income and SIPs. So, if you are thinking P2P, do it only with a RBI-approved platform.

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.


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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