Hunting for newer investment avenues?

Any luck beyond equities, debt and low-yield small savings schemes?

Bitcoins, you say! But don’t you fear volatility? Can you digest 20-30 per cent freefall just every other day?

Most of you cannot. Let us introduce you to a product that has become a rage among millenials!

Peer-to-peer lending, or P2P lending, is a short-term investment avenue that may give you double digit returns in a year or two. Unlike Bitcoins (another popular millennial investment), P2P lending is regulated by the Reserve Bank of India (RBI). The central bank gives licences to P2P platforms that facilitate P2P lending.

Let’s get going.

What is P2P lending?

There are salaried professionals who may need extra cash for emergencies, a gadget purchase or just to survive the last few days of the month before the next month’s salary gets credited. There are small businesses which may need some working capital to get their cashflow intact. Their borrowing needs will not be so much that they approach a bank. Why don’t you be the bank? You can be a lender to borrowers.

Here comes the role of P2P platforms. Such platforms connect the borrowers with lenders. Borrowers easily get the required funding and lenders get to earn decent returns on their lending amount. These platforms are licensed by the RBI, and are called NBFC-P2P.

When did it start in India?

P2P players have been in existence since 2012, when the first platform – i-Lend – was launched. Initially, there was hardly any regulatory oversight. Seeing the potential of the evolving technology and growth of lending to the underserved, the RBI came out with guidelines in September 2017, to convert P2P players into NBFCs by issuing NBFC-P2P licences. It issued fresh guidelines in 2019.

There are around 30 P2P players in the country of which 21 have got the NBFC-P2P licences as of January 2021.

What are the regulations?

Going by the RBI guidelines, one can invest up to Rs 50 lakh across P2P platforms. The minimum amount is Rs 25,000. The central bank has specified that the tenure of a single loan cannot be more than three years and exposure to a single borrower cannot go above Rs 50,000. Besides, different P2P players may fix their lending limits and loan tenures within the RBI prescribed limits.

How to start investment?

You may sign up on one of the P2P platforms and start your journey. Or, you can connect with us. On no extra charge we will take care of your investments and queries. Call us on 8178271045.

Why choose us?

P2P lending is a road less travelled by! Not many people understand the risks involved. With any lending comes the default risk. But if you diversify well across borrowers and platforms, you may control your default risk to a great extent. We help you do that. Not only do we take care of the operational aspect of it, but also the expertise side of it. We emphasise again – no servicing charge! Better to come with us than walk alone.