How often have you applied for a bank loan and had it rejected on one pretext or the other? Generally, the banks give a one-line reason that the proposal does not comply with their internal credit requirements. No one knows precisely the meaning of this statement. The real reason is that the CIBIL score would not be favorable for the bank to consider the proposal.
So, what option do you have now? The best option is to approach a P2P lending platform and get the loan sanctioned within a day or two. You get the loan disbursement also within a few days. The question arises about where the P2P lending platforms get the money to sanction loans from. The answer is simple. The funds come from people like you and me who invest in these platforms to earn better returns than banks and other investment avenues. So, let us look at India’s most trustworthy P2P lending platforms.
Invest In India’s 1st Online Peer-To-Peer Chit Fund Platform
A Chit Fund-cum-P2P lending platform
But before discussing P2P lending, here is an excellent saving-cum-lending alternative. Yes, we are referring to the chit funds. Chit funds had existed since time immemorial, much before the word ‘bank’ was coined. Today, the chit fund market has grown tremendously, with some of the most reliable chit fund platforms, including Money Club, making their presence felt in the market.
The Money Club chit fund platform also works as a reliable P2P lending platform because the money collected from the members is lent to the highest bidder (reverse bidding). The other members share the balance money as their income. So, Money Club can also qualify as one of India’s most reliable P2P platforms.
What do P2P lending platforms do?
P2P means peer-to-peer. So, a P2P lending platform facilitates investors to lend money to unknown third-party borrowers who cannot approach banks for some reason or the other. So, these borrowers are ready to pay a higher interest rate than the banks, allowing the P2P platform and the lender to make decent money.
Here are some of India’s most trustworthy P2P lending platforms. We are listing them in alphabetical order for your convenience.
| P2P Platform | Interest Rate (pa) |
Loan Amount |
Repayment Tenure |
Listing Fee |
Faircent |
From 9.99% |
10K to 5L |
6 to 36M |
Rs 500 |
i-lend |
From 15% |
25K to 5L |
6 to 36M |
NA |
i2ifunding |
From 12% |
Up to 10L |
3 to 36M |
Rs 118 |
Lendbox |
From 12% |
25K to 5L |
6 to 24M |
Rs 500 |
LenDenClub |
From 6.5% |
25K to 5L |
3 to 24M |
Rs 750 |
OMLP2P |
From 10.99% |
25K to 10L |
3 to 36M |
Rs 100 |
As you can see, the P2P lending platforms cater to the middle-class section of society. History is proof that this section of society is the most honest regarding repaying loans. Hence, the recovery performance of these lending platforms is amongst the best in India. Therefore, they can offer good returns to investors.
Why do P2P platforms offer good ROI?
Usually, the neediest persons comprise borrowers in P2P lending. They might have adverse CIBIL scores making them ineligible to apply for bank loans. But the CIBIL score itself is not the prime indicator of credibility in India. Just because you have a low CIBIL score does not mean that you will default on all loans. The P2P lending platforms work on this principle.
The P2P platforms facilitate lending by bringing the borrowers and lenders on a common platform, allowing them to choose their borrowers carefully. The interest rate is higher than banks, ensuring good returns on investment for the lenders. Please check and tell which investment portfolio guarantees an ROI of more than 12%. For example, Bharat Pe, a reputed P2P platform, offers 12% to its members. The interest amount is credited daily to the investor’s savings account.
With Money Club You Can Earn Around 10-20% Return On Your Investment
Final Thoughts
We have seen six P2P platforms that offer good returns on investment. Each of these platforms has a substantial member base growing by the day. The most exciting feature of these platforms is the speed of sanctioning loans, with some platforms crediting the amount to the borrower’s account within 24 hours. All these factors make these P2P platforms the most trustworthy in India.
However, with its APY of around 20% to 25%, Money Club should be the best P2P platform for investment.
