Investing in Peer to Peer Lending in India

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Investing in Peer to Peer Lending India
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Peer-to-peer (P2P) lending is a method of debt
financing that enables individuals to borrow and
lend money without the use of traditional banking
system. Usually, a person who is looking to
invest (Lender) his/her money lends it among
borrowers looking for a short term credit. This
is where Peer to Peer Lending platforms act as a
platform for investment.
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• Parties involved in Peer to Peer lending
• Borrower A person looking for an unsecured
  personal loan
• Lender or Investor A person looking to finance
  the loan proposal by a borrower
• P2P Platform A marketplace where a borrower
  can request for a personal loan and an investor
  can finance that loan

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Working of peer to peer lending? The flow is
pretty simple, borrowers share their request, and
the loan is listed once approved by LenDenClub.
This listing is funded by various
lenders/investors through escrow accounts. The
same escrow accounts are used to transfer funds
from repayments.
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• P2P lending is the latest trend among the
  investment options. Some of its benefits are
• You can invest any amount it can be as low as
  Rs. 500 and as high as Rs. 50,000 per borrower.
  But, there is a limit on maximum total investment
  among P2P lending platforms, i.e. Rs 10 lakhs.
• P2P industry is now under the regulation of RBI,
  hence theres more scope for lenders to trust the
  segment.
• Platforms such as LenDenClub also help investors
  in going through the borrowers profiles before
  making a sound decision.

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Advantages and Disadvantages of Peer to Peer
Lending Advantages- 1.  The money can be split
in different kinds of loans 2.  Lender can be an
individual or an institution 3.  It is your
decision to lend and invest money and you get to
pick your borrower 4.  Returns are higher than
what we get from the banks. Disadvantages- Every
investment comes with certain risks. In P2P
lending, we have the minor risk of default.
However, the risks can be adjusted by investing
smartly among different borrowers.
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You can never be sure unless you have experienced
it. Give P2P lending a chance by signing up with
LenDenClub today.
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Thank You