With the introduction of its product, 12Club p2p Lending, a provider of merchant payments and financial services, is enhancing its consumer offering. The "12% Club" app allows individual individuals to invest and borrow money at a 12% interest rate. BharatPe is now accepting Liquiloans and has worked with LenDenClub on a consumer product. The fintech business launched P2P financing for its merchants in 2019 with the help of the same partners.
In an effort to lower default rates, BharatPe's platform will enable 12 club p2p investors to lend to its merchants.
The company will find it simpler to insure these loans as these businesses will be using the BharatPe payment system. A reputable NBFC, such as Hindon Mercantile, which will provide consumer loans, will provide the 12% Club with the majority of its funding. The typical loan duration on the platform, according to Grover, will be between three and twelve months. Individual investors have already contributed $5 million to the app for the 12 percent club through $1 million in loan payments.
Peer-to-Peer lending
P2P lending is a somewhat new business model. The Indian Central Bank included this service under its regulatory jurisdiction in 2017.
Despite the fact that there were more than 21 lending institutions operational at the time, RBI restrictions allowed only trustworthy enterprises with good business strategies to prosper.
Users with extra funds can lend to prospective borrowers chosen by the service provider via peer-to-peer lending via 12 club P2p.
Borrowers then make regular payments to lenders, either in one large sum or in equal monthly installments.
With the publication of the RBI's rules in 2017, a number of well-known enterprises in the sector reported an increase in earnings.
What are the risks?
Loan default is one of the most significant hazards linked with this sort of lending. Since Bharat P2P lending is an unsecured loan, the borrower is under no obligation to guarantee repayment in the case of a default.
The fact that the loan is unsecured may explain its high return on investment when compared to other lending products.
What actually is the "12%Club p2p?"
Via the P2P NBFC partners of BharatPe, users of the 12% Club peer-to-peer programme have the opportunity to lend money at any moment to invest their savings.
Clients may also apply for collateral-free loans of up to Rs. 10 lakh over a three-month period at any time by using the 12% Club.
There won't be any processing or pre-payment fees for consumer loans, claims BharatPe 12 club p2p. The consumer's credit score, Payback loyalty programme purchase history, and BharatPe QR payments will all be taken into consideration, along with other complex considerations, in order to establish and maintain loan eligibility.
An investor can use the programme at any time to request a full or partial withdrawal of their bank savings.
About BharatPe “12% Club BharatPe”?
- “Consumers using the 12 Club p2p app may invest their savings anytime by selecting to lend money through BharatPe’s partner P2P NBFCs.
- Additionally, consumers can avail collateral-free loans of up to Rs. 10 lakh on the 12 % Club for a tenure of 3 months, as per their convenience,” the statement said.
- The processing fees and pre-payment fees for consumer loans, according to BharatPe, will not apply. Additionally, the loan eligibility will be determined based on the consumer's credit score, their history of using the Payback loyalty program or their use of BharatPe QR to make payments.
- Customers investing via the app may put in a request to withdraw their money anytime, partially or completely, without any withdrawal costs.
Conclusion
In order to engage their target consumers inside the ecological community and provide them the alternative to earn and borrow money at rates that are able to compete with the market, fintech businesses like BharatPe P2P lending are actively trying to to provide new products and services.