What other fintech apps are you using? Let’s discuss what you liked, what you didn’t like and what can Jupiter can learn from these apps.
I have been dipping my toes and doing research on the P2P lending fintech apps. I think the sector has suddenly gained a lot of traction because recently, BharatePe and Cred announced their P2P Club powered by LenDenClub, I guess. While P2P has been present for some time, entry by BharatPe and Cred has created a buzz. So, I evaluated a few platforms and settled on LenDenClub. What I liked most about it is the trust factor since it has been under RBI regulation for a few years plus found it user-friendly and transparent in terms of data shown, which made it easy to understand. They have also delivered double-digit returns since inception. You should check them out. You can start from Rs.500, though recommend 10K or higher, so the funds can be diversified. Also, they had this cool section explaining P2P for anyone if interested: Peer to Peer Lending | P2P Lending Platform in India | P2P Loans - LenDenClub
knowing the risks, I personally avoid this route. I am not sure how these p2p platforms have ability to underwrite risks. looking at Covid data, I know that there was 30% delinquency on these p2p platforms. so, people lost principal. forget the returns
It was a risky segment but with RBI regulations coming into the picture with guidelines that need to be adhered to, don’t you think it minimises the risk? I personally was impressed that companies like LenDenClub with such high volume transactions are still transparent about default rates. Many of these apps including LenDenClub even use some AI to invest money in multiple loans, that might be reducing risk of default too, right?
RBI doesn’t guarantee risk capability of any p2p lender. second, multiple loans doesn’t ensure lesser risk if all loans are of same risk.
basically if you are investing in this category, you should be prepared to loose your capital. so, invest with that mindset. everyone has their risk appetite. you have to decide how much you can afford to loose if you end up in a situation of losing money on p2p platform
Just went through the above thread, and since I work in the finance sector - I have good knowledge that all sectors, including banks, were impacted in the first wave, not only P2P. And it’s not only in India but globally as well. The returns of a friend of mine in p2p came down to almost zero but started going up once the moratorium was over. In the second wave, there was no impact, and I have now invested in LenDenClub and BharatPe - I am getting the double-digit returns promised. Not sure where you got the 30% number, but if you invest your money in short-term low amount p2p loans of say 3-4 months and up to 10/15k, there is always a higher chance of getting higher returns. There is money to be made in p2p - no wonder the market is growing. Maybe you or your friend invested in the wrong P2P platform.