What is the best Peer-to-Peer platform for a small investor?

best Peer-to-Peer platform for a small investor

The world is changing fast, and so are investment preferences. There was a time when Indians never used to look beyond banks to invest their hard-earned money. Thanks to a specific gentleman, Indians looked forward to the stock market to invest in the early 90s. Chit funds are still among the most popular avenues for investing money. Today, you have the Peer-to-Peer lending and investment platforms for small investors. It is not that P2P lending is a new phenomenon because this lending method has been functioning in India since time immemorial. This article focuses on the best P2P platform for a small investor.

Here are some profitable investments for small investors in the P2P lending stage.

Invest In The Best Online P2P Chit Fund Platform 

  • A

    Bharat Pe

    Who does not know about Bharat Pe, especially as it has gained tremendous significance during COVID times by enabling traders and retailers to accept online payments by allowing users to scan a universal QR code? However, Bharat Pe is an excellent avenue for small investors to make money. The Bharat Pe, 12% club, allows investors to invest and borrow at 12% interest. The best aspect is that the interest is paid daily to your account, letting you withdraw it whenever you wish. Besides, the Bharat Pe app allows users to avail of collateral-free loans up to Rs 10 lakhs at 12% interest, repayable within three months.

  • B

    Money Club

    Money Club is another upcoming P2P platform dedicated to providing the best services for small investors. The Money Club Chit Fund platform is one of the most reliable ways of generating good income. While bank FDs might give you a return of around 6% to 7% per annum, the Money Club offers opportunities to earn as much as 41% per annum. Besides, your money is safe as the company exercises great caution while selecting investors and borrowers on the platform.

  • C

    Faircent

    Faircent, India’s oldest P2P lending platform, has its base in Gurugram. It has a vast client base of more than 1.50 lakh lenders ready to satisfy the requirements of credit-worthy borrowers. One of the best and most well-received products of Faircent was the Anti-Lockdown Loans the company launched in April 2020. This product played a stellar role in helping businesses to function properly during the coronavirus pandemic

  • D

    LendingKart

    LendingKart, launched in 2014 in Gujarat, is a leading AI-based P2P lending platform. This platform uses artificial intelligence technology to assess the creditworthiness of potential borrowers. 
    The best aspect of LendingKart is its support for small and medium business enterprises. The platform has a robust presence in the Indian P2P lending sphere, with over 1.50 lakh successful clients. LendingKart is among the top P2P lending platforms for small investors to invest in.

  • E

    RupeeCircle

    RupeeCircle is a comparatively late entrant into the P2P lending market. This AI-based platform has its base in Mumbai and caters to all kinds of business finance. The platform uses the latest AI tools to assess borrowers and offer loans at attractive interest rates. The platform has nearly 1.7 lakh registered users. While RupeeCircle has disbursed loans worth almost Rs 35 crores, the average return on investment is around 24%. Hence, it ranks among the best P2P platforms for investment.

Save Or Borrow Simultaneously With The Money Club

What makes P2P lending platforms ideal for small investors to invest in?

P2P lending platforms are gaining significance because of various reasons.
  • These platforms use advanced AI-based techniques to assess borrowers and their creditworthiness. These state-of-the-art techniques reduce turnaround times and thus help in attracting more customers. In comparison, the banks take more time for appraisals.
  • P2P lending platforms allow for better investment opportunities because they charge higher interest rates on their loans than state-run banks.
  • P2P platforms use high-level data-driven algorithms and data analytics to categorize borrowers’ risk profiles based on their credit history.
  • P2P platforms adopt a more humane approach to lending. As a result, P2P lending platforms select their targets well. It ensures an excellent recovery percentage, resulting in a better risk to reward ratio.
  • Almost all P2P lending and investment platforms offer online services, making it easy for all members.

Final Thoughts

We have discussed why P2P platforms have the edge over the banking and other financial institutions. We have also discussed India’s five top P2P lending and investment platforms. So, we leave it to the customers to decide on the best option.

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