With an unexpected wave of COVID-19 having its effects on the entire economy, adversely affecting different business sectors. Digital lending faced severe consequences as well. LenDenClub, a leading peer to peer lending platform also approved borrowers cautiously during the initial few months of the covid phase. The thesis behind this decision was lockdown and less money supply in the economy, resulting in inability of borrowers to repay their EMIs which could lead to downfall of the business. The similar impact was envisaged by many other Fintech lending platforms.
Further, as the unlock phase began in June 2020, we observed the shift and development in lifestyle which created additional demand for the loans. It grew stronger in August 2020 while this additional demand also helped attract more investors to the platform. The closing quarter has been the best quarter to the company since its inception in 2015.
Post six months of the first lockdown announcement, LenDenClub is one of the winners during this crisis. The company has surpassed its pre COVID loan disbursement numbers during this quarter. Moreover, now targeting to go more aggressively as the complete economical unlock is announced.
Commenting on the quarterly numbers, Bhavin Patel, CEO of 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. “There were some initial challenges of working from home, when the first lockdown was imposed. However, we could easily overcome those due to complete digital operations. Since then, it wasn’t a challenge for us”, added Bhavin Patel.
The increase in disbursement has strengthened the company’s user base to 90,000+ investors and 7,00,000+ borrowers. The company could create a real impact in the digital lending market during the most critical time and when customers needed it the most.
LenDenClub is the fastest-growing peer-to-peer platform in India. Listing only pre-verified loans, LenDenClub offers investors a convenient medium to browse thousands of loans to earn better than fixed deposits, mutual funds etc. With a 100% funding record for its borrowers, LenDenClub currently enjoys a user base of over 90,000 registered investors and over 7,00,000 borrowers. The platform disburses on an average 1lakh+ loans annually.
InstaMoney, an application offered by LenDenClub, is the go-to platform for borrowers to avail instant personal loans. The platform offers you quick loans at an interest rate ranging between 0% (for no cost EMI finance) to 3% (maximum) per month for a tenure of 3-5 months. The loan amount offered under the category ranges between Rs. 5,000 and Rs. 10,000 and is applicable for people without any default/write-off in the past. Since InstaMoney does not require any credit history, it is a more accessible route for an instant personal loan than banks. With over 2.5 million downloads, InstaMoney is one of the best instant personal loan mobile applications available on Google Play.