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.

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.