LenDenClub: The Best Peer to Peer Lending App Grew Almost Three Times in 2021
Investors always keep looking for opportunities that provide stable and high returns on their investments with a lower risk. While various investment options on the market provide higher returns, most of them carry a very high risk. As a result, many investors have started exploring other options like P2P lending.
LenDenClub is the fastest-growing peer-to-peer lending App in India. In the year 2021 itself, LenDenClub grew its disbursals by almost three times. Eyeing a five times growth in the next 18 months, LenDenClub has become the largest P2P investment App in India. But, what is the buzz all about, and how can you invest using LenDenClub? This blog answers all your questions regarding P2P lending.
What is a P2P Lending App?
P2P platforms have revolutionised crowdlending by creating a marketplace for peer-to-peer lending. LenDenClub provides access to investors across platforms, including a website and a mobile app. While P2P lending is an alternative investment opportunity for investors to earn higher interest by directly lending their funds, LenDenClub provides one of the best apps to invest money. You can access the LenDenClub App on both Android and iOS.
As an investor, you must be worried about the safety of your investment. You must also be wondering, ‘Is P2P lending risk-free?’ All investments carry a certain degree of risk. Direct lending is a form of investment that carries moderate to higher risk. But with LenDenClub, you can expect lower default rates than any other P2P platform. In the Second Quarter of FY-22, LenDenClub achieved a default rate as low as 3.98%.
LenDenClub is a marketplace for structured peer-to-peer lending. The ease of access, coupled with the credibility of LenDenClub, attracts many investors across the country. Here are some of the facts you must know about LenDenclub that make it the best peer-to-peer lending app:
- RBI-approved: LendDenClub is an RBI-registered NBFC-P2P i.e., it holds a valid licence to host a marketplace for investors to lend in India
- Escrow Account: LenDenClub appoints a trustee to manage all the P2P transactions through their Escrow Account. Hence, all the transactions happen in a safe and secure environment. As they allow secure transactions for all investors, there are no chances of fraud
- Robust Credit-Modelling: LenDenClub evaluates every borrower based on 200+ unique data points, including their details, income, employment status, and other details. LenDenClub also conducts credit verification of the borrowers to avoid erroneous judgements and to safeguard investors’ money
- Trusted by 1.5 million Investors: While there are many advantages of using LenDenClub, the best testimony is the investors’ trust. LenDenClub has an active investor base of 1.5 million, making itself the most trusted P2P investment app
- Low Default Rates: As discussed earlier, LenDenClub has a lower default rate due to its unique and robust credit-modelling. Due to this, LenDenClub faces a default rate as low as between 3-4%, which is considerably lower than its peer platforms
- Higher Returns of up to 12%: LenDenClub investments are purely based on lending. Hence, there is no market risk involved, and you can enjoy monthly returns. By choosing the best investments through LenDenClub, you can earn higher profits, up to 12% p.a.
- Flexible Loan-Tenure: LenDenClub hosts various investment proposals with different loan tenures that are short-, medium-, or long-term. You can choose multiple options as per your requirements. This flexibility of tenure allows you to plan your investments properly
- Diversify Risk: The LenDenClub app allows you to have limited exposure to one borrower by limiting the maximum lending per borrower and starting it at ₹500 per borrower. By choosing multiple investment options with limited exposure, you can easily diversify your default risk and earn safer and higher returns
- AI-powered auto-investment: This feature makes LenDenClub the best peer-to-peer lending app. You only need to add money to the platform and select the parameters of preference. Thereafter, the AI-powered platform auto-invests on your behalf based on your investment amount. It doesn’t let your money sit idle and reinvests the interest income, providing you with the benefit of compounded returns
- Various reports: You can access different reports like investment and transaction history, account statement, income statement, etc. They can help you keep track of your investments and returns
- Recovery Support: If the borrowers default in payments, LenDenClub provides the best recovery support to enable repayment by the borrower
The Process of Lending via LenDenClub
Here are 4 easy steps using which you can start lending via the LenDenClub P2P-investment app.
3.1 Register on the App
You can register on LenDenClub using their website or the mobile app. For registering, you need to fill in the following details:
- Personal Details: Name, Phone Number, Email ID, etc.
- Identity Cards: PAN Card for all investors, Aadhar Card for individuals, and a Certificate of Registration for institutions
3.3 Add Money
LenDenClub supports multiple payment options that allow UPI and bank transfers. You can add money to your account within a few seconds using your UPI ID or through your bank account.
3.4 Start Investing
Once you have set up your account after approval from LenDenClub, you can start investing through the P2P platform. On your dashboard, you can see the investment prospects, the amount required, the tenure of the loan, etc. Further, you can monitor your investments through various reports generated by the platform.
LenDenClub App Features
Here are the features of the LenDenClub App that make it the best P2P investment app in India:
- Invest on the Go: You can invest using the LenDenClub app at any time and from anywhere
- Monitor Your Investments: Monitor all your investments through auto-generated reports
- Add Funds: You can add funds whenever you want and allow it to be invested automatically. LenDenClub supports both UPI and bank transfers
- Minimum & Maximum Investment: While the RBI allows high exposure limits per borrower, LenDenClub encourages diversified investments. With a minimum investment of ₹500 and a maximum of ₹2000 per borrower, you can easily enjoy the maximum diversification opportunities provided by the platform
All of the above advantages make LenDenClub the best peer-to-peer lending app in India. You can easily register and use the app for lending and investing your money to earn higher returns. Download the App on Playstore or the App Store and start investing now!