27.1%
Average Returns
251,368
Registered Borrowers
4.2%
Default Rate
27,319
Registered LendersThe simplest way to understand how P2P Lending works.
Explore our FAQ section and get all your queries related to investing money online in P2P lending answered.
P2P Loans are new investment asset class for your portfolio.
Sustained high returns on investment make P2P lending a sought-after investment option for fixed income investors. Across the world, it is used as a diversification tool by HNI’s and institutions. Learn more about it from our team.
Start InvestingP2P lending is the only high return instrument to fetch monthly cash flows with interest payments. Unlike other/ traditional investing instruments, cash flow is not tied to maturity and starts immediately after the investment.
Start InvestingTraditional instruments such as equity, forex, commodity etc. have high volatility inherent to them, resulting in notional or actual losses. P2P lending is unique in that way, which offers zero volatility with expected returns.
Start InvestingDiversification of lending amount among many borrowers is default risk mitigation.
Optimal diversification can vastly improve the performance of your P2P investments. As a widely accepted practice, investors diversify their investment portfolio across various instruments to ensure that the collective performance of the portfolio sufficiently eclipses the losses of individual instruments. Similar principle is applied to P2P lending as well. For instance the performance of an investment amount of Rs. 10 lakhs divided into 20 borrowers (Rs. 50,000 each) could be majorly affected by even one default. Whereas, if a similar amount is divided between 500 borrowers (Rs.2,000 each), a couple of defaults won’t affect the collective returns of your portfolio in a big way. Optimal diversification ensures high returns.
The process to invest money online in P2P lending is very simple and easy.
Register as a lender by providing basic KYC information and a one-time registrations fee of Rs. 500. That’s all it takes to get started.
Before you invest money online in P2P lending, you can view verified borrowers. Select the ones you want to offer loan to and offer the amount you want to invest.
Receive monthly returns from the borrower and start growing your wealth. You also have the option to reinvest your earnings.
The borrowers on our P2P lending platform come from a large demographic pool, primarily consisting of salaried individuals. Every borrower goes through a 5 step LenDen screening mechanism where borrower’s personal, professional and financial information is scrutinised by our digital verification mechanism and physical verification checks. On successful verification and confirmation of the borrower credentials, the profile is processed by our proprietary S-Algo (Screening Algorithm). The borrower is listed on the platform once the comprehensive sets of S-Algo criteria are met. We also visit each of the borrower’s house before his loan amount is transferred to his account. This ensures lesser borrower defaults and easy tracing of borrowers if at all he/she defaults.
We verify all personal details of the borrower including reference verification, residence verification.
Our credit team also verifies the professional details of the borrower, including office reference check.
Our field executives verify the professional and personal address of that borrower by doing surprise visits.
Borrowers financial details are verified by doing a thorough check of salary proof and bank statement analysis.
To ensure that no defaulter borrower pass through our credit check, we check for credit history of each borrower using CIBIL Credit Bureau data.
LenDenClub processes loan disbursement and EMI repayments through a third party SEBI registered escrow agent, ICICI Trusteeship Services Limited . The escrow agent communicates with our platform and bank escrow bank account. On receipt of a transaction, they get it executed with our escrow bank ICICI Ltd. LenDenClub has no access whatsoever to the funds. The Escrow account functions as a detached unit from the platform to ensure complete security of lender and borrower’s money. The complete end to end process is intuitively managed by the platform without human intervention. An annual and monthly audit of the Escrow account is conducted by the escrow agent in adherence to the prescribed mandate.
Lenders have very high regards to our borrower assessment & approval process
"I invested in peer to peer loans through LenDenClub. I receive regular monthly EMI payments directly into my account. The loan performance is also good."
A Dahuja
"I like their principled, grounded approach to the credit business, personal attention to clients, clean & useful UX, a very well-set team managing their clients"
Rajesh
"From the very first transaction, through LenDenClub, the quality & depth of service has been wonderfully consistent, leading to appropriate investment decisions."
Rajranjan
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Disclaimer
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 on it.
LenDenClub is an Intermediary under the provisions of the Information Technology Act, 1999 and virtually connect lenders and borrowers through electronic platforms of website and/or mobile app. The lending transaction is purely between lenders and borrowers at their own discretion and LenDenClub does not assure loan fulfillment and/or investment returns. Also, the information provided on the platform are verified or checked on the best efforts basis without guarantying any accuracy in the data/information verification. Any investment decision taken by the lender on the basis of this information is at discretion of the lender and LenDenClub does not guarantee that the loan amount will be recovered back 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.