Home / Without Label / How safe is Peer-to-Peer Lending in India?
Monday, 28 December 2015
Investing in P2P Loans and understanding the market in India
Peer to Peer lending, has presented itself as an alternate investment option largely due to high yielding returns. With companies such as Prosper and Lending Club defining the P2P market in United States, this segment in India is dominated with online marketplaces which connect Borrowers with Lenders.
Rupaiya Exchange, i-Lend and Faircent are some of the leading websites which have established themselves in facilitating unsecured loans (Collateral Free).
As to the conventional investment options with limited return options, a lot of professional investors are turning towards P2P lending. Lending is done with more diligence, borrowers are given a grade rating based on the credit checks, and are cherry-picked for lenders, and assigned a risk.
Investors on the platform can earn interest rates upto 30 % on pieces of loans lent to peers.
On Rupaiya Exchange, each lender has an option of diversifying his portfolio by spreading his risks across multiple loans and thus earn a fixed rate of return. The entire process on the platform is transparent for both a borrower and a lender. The advantage on the platform is lender protection fund which guarantees that a lender’s principal is safe at all times, an option which is unmatched by some of its competitors. Each loan which is fulfilled is insured from the point of view of an investor which makes this a lucrative way to earn interests on savings.
Borrowers can use the services on Rupaiya Exchange for any number of reasons, ranging from debt consolidation to medical needs. With borrowers getting the amount disbursed to them without much hassle and at a lower rate of interest than a bank, lending and borrowing is a safe bet for people across.
The lending experience on Rupaiya Exchange is close to a market analysis screen on a stock market, a screen which comprises of the loans lent to borrowers along with the payment schedule.
Earning safe and high returns on Rupaiya Exchange
1. Diversify – The risks of a perspective lender can be split to a number of loans which ensures an average fixed return of 10%. This should be based on loan grade, loan type, loan duration and interest rate.
2. Start slow – Get a better understanding on the market place and start by investing amount as low as Rs 1000.
3. Due Diligence - Inspect all documentation from the borrower such as credit history and after checking the grade, risk assigned by Rupaiya Exchange.
About Rohan Hazrati
Rohan is the Founder of the Peer-to-Peer lending platform Rupaiyaexchange.
Subscribe via email
Like the post above? Please subscribe to the latest posts directly via email.
What is P2P?
- alternative finance
- bank rate cuts
- benefits for investment
- Bond Market
- CC limits
- consumer loans
- corporate tax rate
- demonetisation impact
- digital India
- digital transactions
- digital wallets
- expectation from budget 2017
- fight against corruption and terrorism
- fintech startups after demonetisation
- GST 4 Slab Structure
- GST bill
- GST tax slabs
- Interest Rate
- Investment options
- Investment plans
- Money Manager
- Mutual Funds
- narendra modi
- narendra modi speech for corruption
- OD limits
- p2p lending
- p2p lending in India
- P2P Loans in India
- pay day loans
- payday loans
- peer to peer lending
- peer to peer lending in India
- peer to peer lending platforms
- Peer to Peer Lending. Plastic currency
- Rs 500 and Rs 1000 banned
- rupaiya exchange
- Short term credit mismatch
- short term loans
- stock market
- surgical strikes on black money
- Union budget 2017
- VAT implementation
- VAT on alcohol
- VAT on food
- why demonetisation
- ► 2016 (35)
- ▼ December (7)