Best P2P Lending Platforms in India

best p2p lending platform in india

Do the interest rates on your fixed-income assets cover the time value of money? While inflation ranges between 5-6%, P2P investments can provide handsome returns. P2P lending sites provide a marketplace for direct lending, etc. Hence, they offer attractive and smart investment plan opportunities without exposing you to market risks.

12% Return

Although P2P lending in India is relatively new, it is gaining mass acceptance at a quick pace. As per the forecast published by IndustryARC in “India P2P Lending Industry Outlook 2021-2026”, the market for P2P loans in India can grow up to USD 10.5 Billion by 2026. Now before we go to find out the top P2P lending platforms, let’s learn a bit about .

Overview of P2P lending

P2P lending sites provide a marketplace to facilitate investors and borrowers who can carry out P2P lending by directly registering on their websites. In a nutshell, peer-to-peer lending means direct lending between individuals who want to invest money and those who want to borrow money. By reducing the role of banks, P2P platforms have made new-age investment easier and more accessible for the masses while regulating and standardising it, Learn more in detail introduction to P2P lending.

P2P platforms diversify these investments into multiple borrowers to mitigate risk. Online investment platforms like LenDenClub allow you to choose an auto-investment facility. Instead of making manual investment in each borrower, you can set up filters based on which their AI-powered interface auto-invests your money on your behalf, customisng and automating it at the same time.

Read this if you want to know more about what is P2P lending and how does it work.

Features of Peer to Peer Lending Platform

Here are the key features of P2P loans:

  • Anybody Can Invest: You do not require much hassle for investing with P2P lending sites. So, if you want to earn good returns on your investments, you can choose to lend through these platforms. 
  • Regulated by RBI: Online P2P lending platforms operate according to RBI regulations that define the scope of their business and the prudential norms to be followed. LenDenClub is an RBI registered NBFC-P2P platform that holds a valid business license to operate in the P2P market.

Read: Most Profitable Business in India With Low Investment

  • Evaluation of Borrowers: To provide an additional layer of comfort for the investors’ funds, the P2P platforms evaluate the borrowers’ credentials themselves. Only those borrowers who pass the standards of the platform are allowed to borrow. LenDenClub thoroughly frisks all the borrowers’ profiles and details with 200 data points. 
  • Easily Accessible: Being an investor, you have to register online and get started in just a few clicks. By replacing the middlemen with the help of technology, you can easily grow your income with the best P2P lending platforms in India. You can access LenDenClub across platforms, including their official website or mobile application available on android and iOS.

Read: Which is the best investment plan in India for middle class

Are your fixed-income assets keeping pace with the rising inflation?  

The inflation rate is between 5 and 6%, so it’s important to consider options that offer better returns. In India, P2P lending offer smart investment opportunities. Market risks are minimized with this lending option.

P2P Lending Simplified 

P2P lending is a place where people can lend or borrow money directly from each other, skipping the middleman, aka banks.

Let’s understand how it works: 

If you have some extra cash lying around and want to make it grow, you can lend it out to others who need it. On the other side, if you need some cash, you can borrow directly from people willing to lend. It’s a win-win for both parties involved. You can earn up to 15% p.a returns. 

P2P platforms like LenDenClub offer you Manual lending, where you have the freedom to choose who you want to lend your money to. Lenders can select your borrowers manually based on your criteria.

P2P platforms also help to spread out the risk by splitting your investment among multiple borrowers. 

So, if you’re curious about P2P lending and how it all works, check out this blog to get a better understanding. 

Let’s find out 6 best P2P lending platforms in India

8 Best P2P lending Platforms in India

LenDenClub

LenDenClub is your ideal platform for spreading out your investments, this helps in reducing risks. LenDenClub is one of the oldest and most renowned names in India. Also, India’s largest P2P Lending platform.  

The best part about LenDenClub is the algorithm that breaks down your investment into tiny bits and spreads them out among many borrowers.

Key Features

LenDenClub has 3 products:

Lumpsum: For creating long-term wealth

Investment: Rs 10k- Rs 50L

Period: 3 months – 5 years 

Payout: Term-end

Monthly Income: To earn monthly income

Investment: Rs 1 lakh- Rs 50 lakh

Period: 1 year- 5 years

Payout: Monthly 

Manual Lending: To invest according to your preferences 

Investment: Rs 500- Rs 2000

Period: 1 month- 3 years

Payout: As per loan

You can earn up to 10-15% p.a returns

Liquiloans

Liquiloans is without any doubt a top-tier P2P lending platform, it has over 150,000 lenders and a 100% success rate. If you are a borrower and your credit score is above 700, then you are eligible for a loan.

Lenders have a safe environment to put their money and earn good profits. One more advantage, all investments are managed through IDBI Bank & Trustee, which gives an extra layer of reliability.

Key Features:

Lenders funds are diversified across 200+ borrowers, limiting exposure to any single borrower to just 0.5%.

Rigorous borrower vetting is done, credit checks, income verification, and KYC procedures guarantee returns for investors.

Start your lending with as little as Rs.10,000

You can earn up to to 10.5% interest annually.

Finzy 

Finzy gives you a loan with the quickest turnaround time, you have to pay the lowest rate of interest in a hassle-free manner. At Finzy, you get the benefit of a low monthly EMI, they have a loan tenure of 36 months.

Key Features

Interest rate: From 10.99% p.a

A visual dashboards to keep track of all your transactions.

Lendbox

Lendbox is an RBI Registered NBFC-P2P that was founded in November of 2015 to modernize the debt investments industry – a business as old as time. You also get your wealth manager. This dedicated relationship manager will help you make better financial decisions and increase your wealth.

Key Features

Minimum lending amount: Rs.10,000.

Earn interest of up to 14% p.a

Faircent

Faircent has a lender base of over 200,000 in FY-21, it has made history as India’s first P2P lending platform to obtain an NBFC-P2P license from the RBI. Founded in 2013 by Rajat Gandhi, Vinay Mathews, and Nitin Gupta, Faircent stands out with its inventive loan portfolio. 

Key Features

Minimum lending amount: From Rs.50,000 to Rs.50 lakh.

Interest rates: From 8.25% to 12% p.a 

Cash Kumar

Cash Kumar stands out from other P2P lending platforms, it offers an opportunity to lend in working capital loans for partner-backed businesses located in Tier 2 and Tier 3 cities. Cash Kumar only lends to businesses dependent on its partners to minimise default risks.

Key Features

Lending tenures: 7 to 28 days 

Returns: 12% p.a 

Capital that Lender provide is spread across borrowers, thus reducing risks and maximising returns.

Rupee Circle

Rupee Circle is India’s fastest-growing P2P lending platform, RupeeCircle is dreaming of a world without any traditional banking barriers. It wants to provide easy access to credit for borrowers and lending opportunities for lenders. 

Key Features

Get personal loans: Ranging from Rs.25,000 to Rs.5 lakh 

Flexible repayment tenures ranging from 3 months to 24 months.

Options for both monthly payouts and auto investment.

i-Lend

i-Lend has shaken India’s credit scene with a fresh approach. i-Lend’s platform is where borrowers and lenders come together to agree on the terms of a loan that work best for everyone involved.

Key features:

The interest rate is up to 15% per year.

Individuals can borrow anywhere from Rs.25,000 to Rs.5 lakh.

Plus, the loan durations are flexible, spanning from 6 to 36 months.

The Way Forward 

Studies suggest that by 2026, India’s P2P lending market will reach $10.5 billion valuation. 

Further, the Central Bank is introducing new regulations, such as strict creditworthiness, assessments, and know-your-customer (KYC) checks, to enhance transparency and combat fraudulent activities within the sector. 

Benefits of P2P Lending

  • Higher Returns: The interest return rates have gradually reduced over the last decade. Hence, a regular FD or savings account doesn’t pay more than 5-6% interest. On the other hand, by investing in India’s best P2P lending platforms, you can easily earn double digits. 

Calculate your monthly income with monthly income scheme calculator

  • Auto Invest: On the LenDenClub platform, you can choose to auto-invest so that your funds never remain idle. As soon as the EMIs are received, both the principal and interest are automatically reinvested by the AI-powered platform, giving you the benefit of compounding.

Read: Best Investment Plan for 5 Years in India

  • Saves Your Time & Efforts: Before investing your money in investment apps, you have to study the viability of the options and analyze all the parameters. P2P platforms provide borrowers’ evaluations that can be useful in making your investment decision. Some like LenDenClub even automate the borrower selection, simplifying the process further.
  • Diversified Exposure: It is risky to put all your eggs in the same basket. Hence, investing all your funds in one place is a bad idea. By investing in P2P Platforms, you can choose multiple borrowers and investments. It can help you reduce your risk and maximize your returns.

Read: Best Investment Plan for 1 Year in India

Why LenDenClub is the best P2P lending platform in India

While there are many P2P platforms available in India, here is why LenDenClub is special and the best P2P platform for investing your money:

  • Safety Net of Escrow Account: LenDenClub appoints a trustee for managing all your transactions through an Escrow Account. This means that they never directly deal with your funds. This gives an additional layer of security to your funds.
  • Widely Accepted: LenDenClub is an RBI registered NBFC-P2P. Over the period of 6 years, LenDenClub has gained popularity among the investors and has onboarded over 1.5 million active investors on its online platform.
  • Low Default Rate: While the default rate faced by Indian Banks on average was 7.3% in 2020-2021, LenDenClub has been able to achieve default rates as low as 3-4% the recent quarters.
  • Invest as Per Your Choice: If you need monthly cash flows, you can choose the basic plan where your EMIs are deposited in your account and you can check out best investment plan for monthly income. On the other hand, you can select the auto investing option if you wish to build capital for your future. The AI-powered investment system of LenDenClub reinvests your EMIs automatically.
  • Access Various Reports on the Dashboard: You can easily check reports like your account statements, EMI statements, and investment history to stay informed about the status of your investment and returns.

Are you considering investing or borrowing through a P2P lending platform? Learn more on How to Choose the Best P2P Lending Platform in India


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.

About

Investment

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 investment returns. 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 investment 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’ investment amounts.

*This is an annualized yield and is subject to the maximum FMPP tenure, which is 5 years. P2P investment is subject to high risk and may cause an entire loss of principal.
 

*P2P investment is subject to risks. And investment 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 returns received by investors

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