FMPP an evolution in P2P investment

Aug 8, 2022

How is FMPP an evolution in P2P investment?

In this blog, you will learn as to why FMPP, the Fixed-Maturity Peer-to-Peer Plan from LenDenClub, is regarded as an evolution in P2P lending investment. First, we shall go through the challenges with P2P lending and then know how FMPP came about overcoming them.

P2P investment is seen as an alternative investment avenue by some. Due to the high returns-yielding potential of the investment instrument, coupled with its non-volatile nature, it is regarded as the only solution for optimum investment by many. 

The ever-looming problem with inflation is the biggest detractor of many traditional investment instruments. A rate of inflation at 7% as of June 2022 means many traditional fixed-income investment avenues fail to do justice to your locked-in money; there is no wealth growth but an illusion of it. P2P investment gives inflation-outcompeting returns. LenDenClub, India’s biggest player in the P2P lending sector, has been delivering consistent returns of 10 to 12% p.a.* since 2017, along with consistently low NPA. 

FMPP resolves all investment-related concerns

P2P lending as an investment instrument is designed by taking all the shortcomings of other asset classes into consideration. It, therefore, offers returns higher than other asset classes. The P2P mechanism also is intrinsically not prone to ups and downs of the market. Furthermore, P2P lending is duly regulated by the RBI. 

However, despite all the advantages of P2P investment, some P2P lending platforms have their own set of shortcomings: on-boarding of non-creditworthy borrowers, the hassle of manual selection of creditworthy borrowers, a small pool of borrowers for allocation of funds, dependence on service personnel for assistance, etc are to name a few. 

LenDenClub’s FMPP investment plan has been devised such that it overcomes the shortfall not only of other asset classes but also of P2P investment plans offered by other platforms. FMPP, hence, offers- 

  1. Returns of up to 10 to 12% p.a.*.
  2. Marginalised NPA through Systematic Risk Mitigation, an added dimension for lowering NPA further due to the plan’s unique hyper-diversification principle, i.e. allocation of funds across a larger borrower base.
  3. AI- and ML-enablement for a hassle-free and worry-free investment experience. LenDenClub’s dashboard shows the returns on maturity, portfolio value, etc at a glance. The LenDenClub app also enables carrying out operations like adding funds, withdrawal, assistance, etc within few clicks, reducing dependence on service personnel.

FMPP is truly a new-age investment avenue

With FMPP, LenDenClub aims to meet its proposition, i.e. returns of up to 10 to 12% p.a.*. Besides, the hassle-free and worry-free investment experience means FMPP is the one-point, new-age solution for investment. 

FMPP, a means of portfolio management

The well-balanced nature of the FMPP investment plan means it is a one-size-fits-all investment avenue. Hence, one can start an FMPP investment with as low as ₹10,000. 

On the other hand, one can even opt for FMPP as a means of portfolio diversification. FMPP can be strategically used for investing, given its high and returns-yielding nature. Hence, one can add FMPP to a diverse investment portfolio and be sure to balance it out.

FMPP, a committed -term plan for wealth building

Since FMPP has been designed to deliver the best of  many traditional fixed-income investment avenues, it is aimed at delivering consistency over an extended period of time, of course, factoring in inflation, market whims, etc. Therefore, FMPP has been devised as a fixed-term, fixed-maturity investment plan. 

FMPP comes with flexible tenures of 1, 2, 3, 4, or 5 years. For a five-year term, one can earn yield of up to 12.21 to 15.25% p.a.*

A corollary to this is that one can potentially double their investment amount in nearly six years. 

The LenDenClub app and website have an FMPP calculator that can help someone calculate returns with a minimum forecast RoI. One can go One can go for a starting investment amount of ₹10,000 and invest up to ₹10 lakh. One can also invest up to ₹50 lakh by submitting a net-worth certificate. 

Having multiple FMPP investment plans can be helpful in planning financial growth. Different such plans can be started with different maturity periods and dates.

FMPP helps LenDenClub in delivering its value proposition

Returns that are high yet risk-mitigated are what every investor looks for.

LenDenClub has had a consistent portfolio meeting its returns proposition of 10 to 12% p.a.* since 2017. However, with the previous algorithm, the returns earned across the investor base were uneven, partly also because of the manual borrower selection process. With FMPP’s unique hyper-diversification principle, funds allocated are as low as ₹1 per borrower. FMPP is set to give platform-level uniformity in portfolio performance.

Besides, the end-to-end process of on-boarding and selection of borrowers is automated with FMPP. 

With so many factors included, FMPP is set to give returns that are higher than many traditional fixed-income investment avenues. LenDenClub has a stringent borrower on-boarding process. As a non-banking financial Peer-to-Peer company (NBFC-P2P), LenDenClub follows all the protocols of selecting borrowers who are Credit Bureau-verified–on a par with the traditional banking financial model. LenDenClub’s second checkpoint is 200+ verification points that these selected borrowers are screened over. 

The well-balanced nature of FMPP makes it the choicest option amongst P2P investments in particular and investments in general. 

Conclusion

FMPP, being an investment instrument that resolves shortcomings of every asset class, is truly an evolution in P2P investment. It is also an advancement in the new-age investment solutions.

  • A family of more than 2 million people
  • AI-powered Auto investment
  • Allows diversification and reduces risk
  • Screens borrower’s profile through 200+ data points to reduce the risk of default.
  • Provides returns up to 12% p.a.
  • Market-risk free returns
  • Safe and Secure transactions using the ESCROW mechanism.

Hop on the bandwagon with 2 million+ investors. Register now!

*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.

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