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Blog / Peer to Peer Lending: A new Investment Instrument
18 Jan
P2P lending

Peer to Peer Lending: A new Investment Instrument.

The idle money loses much of its sheen in course of time if it is not invested in wealth creating instruments. A new promising investment instrument called Peer-to-Peer Lending(P2P) is fast gaining traction in Indian Investment scenario. Money lending for personal use is not new in India but combining money lending with internet technology is certainly going to be a game changer. With ever increasing internet literacy and equally increasing internet penetration, Peer-to-Peer Lending for personal loans is on its way to shake up conventional investment tool.

Conventional tools like Fixed Deposits yields 7-8% returns and are sometimes even unable to beat inflation. Equities and Mutual Funds require extensive knowledge of market and are too esoteric for common investors. P2P Lending comes into the picture to bridge those gaps. There are large numbers of persons who do not have much needed access to capital. The capital required may not be large but they are overlooked by conventional financers owing to their small capital requirement. Therefore P2P Lending has a huge potential to reach out to those untapped & needy borrowers. This serves two purposes: easy access to capital for borrowers and higher returns to lenders. Lending on P2P platform such as LenDenClub.com is much easy and it reports weighted average interest rate of around 20%.

If you have a saving and are looking to multiply your wealth, P2P platform of LenDenClub.com is a right place to start with for 3 reasons:

  • Higher returns: A higher return is the only incentive that prompts an individual to save and invest. P2P lending through LenDenClub has yielded around 20% for their investors. This data on returns is backed by actual transactions that took place on LenDenClub platform in last 6 months.
  • Small capital & Easy Start: Often a saying goes "Huge Capital generally yields huge returns." However, at P2P lending platform, you need not keep aside huge capital to earn high returns. You can start investing with capital as small as Rs. 5,000. To register at LenDenClub platform and start your P2P investment journey you just need to create an account, complete online verification and you are on your course to earn return on your investments.
  • Risk Handling & Easy Tracking: To a common investor occupied in his own business and occupation, tracking his investment portfolio is another cumbersome and time consuming task. In any day, he would prefer to have information of his portfolio without spending much of his already occupied time. LenDenClub.com, with its excellent user interface, keeps track of investment of individual investors. Lenders can generate detailed reports related to their investments.

If investment is a coin, returns and risks are its two sides. Every investment is fraught with risks. P2P lending platform LenDenClub.com is equipped with excellent analytics and knowledgeable workforce to create a risk profile of every borrower so that investor is fully aware of associated risk. The information helps investor make informed decision regarding the investment and help overcome risks with return on every investment made from their hard saved money.

Peer to Peer Lending through an online platform has been a great success in markets of USA, China and UK. What sets apart Peer to Peer lending on internet platform from conventional money lending is the former's ability to reach out to large number of people. The increasing internet literacy and internet penetration assures ever increasing customer base. The larger the number of user the greater is the connection between borrowers and lenders through P2P lending platforms. Borrowers will have much needed access to capital. Lenders can lend to wide number of borrowers by creating a mix of high and low risk investments to earn desired rate of return and at the same time spreading the risks.

Any investment is considered good when it allows investors to earn higher returns with an option to minimize risks that too by choice.

Investment on Peer to Peer Lending platform like LenDenClub wholesomely fulfils the criteria of good investment.