LenDenClub, one of the fastest growing P2P lending platforms in India, introduces initiatives to protect lenders on their platform.
Mumbai: One of the biggest challenges in the growing P2P lending industry in India is the protection of lenders against defaults by borrowers on the platform. While LenDenClub has already established robust process before approving borrowers with a less than 1% default rate, one of the lowest in the industry, over the last six months, the brand has now introduced new features to help enhance the protection of its lenders on the platform.
The P2P lending platform will be shifting to a new legal structure, where in LenDenClub, will be authorized by all lenders of the borrower to initiate legal case against him/her. LenDenClub will take action against borrowers for delays, non-payment and any instances of a bad cheque. This move not only helps protect lenders through legal action, but also, ensures borrowers honor the loans they avail and pay on a timely basis.
Speaking on the new initiative, Bhavin Patel, Co-Founder, LenDenClub, commented, “As we expand into new cities for borrowers such as Nagpur, Ahmedabad and Vadodara, we understood that we needed to increase the confidence and protect the interests of more than 2500 lenders on our platform. This new initiative will help us boost lender protection on our platform and enrich the entire eco-system to allow honest borrowers towards financial inclusion and access to capital. We have understood that the entire industry needs to have a stronger recovery process, and initiatives such as this will help take us, and the entire industry, in the right direction.”
LenDenClub has always focused on ensuring a platform with strong processes, checks and security to ensure borrowers have access to capital and lenders are protected. The platform looks forward to introducing more of such initiatives to benefit, both, the borrowers and lenders on the platform, and the launch of this initiative is the first step for the brand in this direction.
Credit: Sify Finance
