The idle money loses much of its sheen in course of time if it is not invested in wealth-creating instruments. A new promising investment instrument in India called Peer-to-Peer Lending (P2P) is fast gaining attraction in the Indian Investment scenario. Money lending for personal use is not new in India but combining money lending with internet technology is certainly going to be a game-changer. With ever-increasing internet literacy and equally increasing internet penetration, Peer-to-Peer Lending is on its way to shake up conventional investment tools.
Conventional tools like Fixed Deposits yield 7-8% returns and are sometimes even unable to beat inflation. Equities and Mutual Funds require extensive knowledge of the market and are too esoteric for common investors. P2P Lending comes into the picture to bridge those gaps. There are large numbers of persons who do not have much-needed access to capital. The capital required may not be large but they are overlooked by conventional financiers owing to their small capital requirement. Therefore P2P Lending has a huge potential to reach out to those untapped & needy borrowers. This serves two purposes: easy access to capital for borrowers and higher returns to lenders. Lending on a P2P platform such as LenDenClub is much easy and it reports a weighted average interest rate of around 10-12%.
If you have savings and are looking to multiply your wealth, P2P platform of LenDenClub is the right place to start your investment.
The benefits to lenders or investors from P2P Lending
Any investment is considered good when it allows investors to earn higher returns with an option to minimize risks that too by choice.
Investment on Peer to Peer Lending platforms like LenDenClub wholesomely fulfills the criteria of a good investment.
To know how to start investing in P2P lending platforms please read this article.