Peer-to-Peer (P2P) lending platform, LenDenClub is back at pre-Covid disbursements on its platform. Naturally, the P2P lender went slow on onboarding and approving new borrowers over the uncertainty during the lockdown phase.
With subsequent unlock phases June onwards an additional demand was seen attracting more investors to the platform. The P2P lender said, “The closing quarter has been the best quarter to the company since its inception in 2015.”
Bhavin Patel, CEO, LenDenClub said, “The new loan sourcing numbers are encouraging and growing rapidly month over month. The loans which were sourced after April, have better or comparable repayment rates when we do it with pre-covid months. The last quarter was good for the company. Next two quarters are expected to be even better as we are focusing aggressively on new loans sourcing after encouraging collections numbers of Q1 and Q2.”
“The company has registered an average monthly growth rate of 80% between April and September 2020.”
The P2P lender has a user base of over 90,000 investors and more than 7,00,000 borrowers.
Further, the FinTech lender is expanding its flagship platform InstaMoney to Pan-India from existing presence in 7 states.
The lender will be now servicing its InstaMoney app across 1,55,599 pin codes in India.
Through InstaMoney Bhavin aims to serve the borrowers unserved by banks and NBFCs by the end-to-end digital experience. The borrowers on the platform generally seek loans for medical emergencies, debt consolidation, education, advance salary among other purposes.
The P2P lender is banking on the strong economic revival since Unlock-1 and aims to triple its disbursal in this quarter. It said the platform grew 5 times amidst the first two quarters and subsequently doubled its number of users (Lenders and borrowers) on the platform during Q1 and Q2 in the current financial year.
Bhavin believes pan India presence will assist the wide cross section of people around the country to avail instant loans through the app only platform.
The platform offers an interest rate ranging between 0% (No-cost EMI) to 3% maximum with average ticket size ranging between Rs 5000 – Rs 10000.
On adjustments to risk assessment, Bhavin said, “There’s 1.5% Increment in RoI at the platform level between March and September.”