FinTech startup called BharatPe powers the investing and borrowing 12 percent club app BharatPe. One of the largest Fintech company in India is 12 club bharatpe If you invest your money at 12%, you could earn up to 12% interest.
With the debut of its product, 12 club bharatpe a merchant payments and financial services provider, is expanding its consumer play and entering the peer-to-peer (P2P) lending industry.
Through the 12 percent club app, individual investors will be able to invest and borrow money at 12% interest thanks to BharatPe's P2P service.
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12 Club BharatPe has collaborated with LenDenClub for the consumer offering and is currently onboarding Liquiloans. The fintech had introduced peer-to-peer lending for its merchants in 2019 with the same partners.
To ensure low delinquencies, P2P investors on the 12 percent club app platform will be lending to its merchants.
The company claimed it will be able to assess these loans more precisely based on business cash flows and assist in repaying this credit by even withdrawing a small amount from daily payouts because these merchants use the 12 Club BharatPe payment system.
By making loans to customers, an established non-finance organisation (NBFO), such as Hindon Mercantile, will support the borrowing on the 12 percent club app.
12 percent club app had first launched
"We conducted a soft launch for the product earlier this month and consider the 12 percent club app to be a reasonable substitute to park additional money without accepting the significant risks associated with equities. Additionally, it gives investors complete flexibility to leave the offering at any moment. Lending to a small cohort poses no concentration issue because 12 Club BharatPe has millions of merchants,"
According to Grover, the normal loan period on the site will be between three and twelve months.
Individual investors have already been investing $5 million each month into 12 Club BharatPe, and $1 million in loans have been disbursed.
Despite the fact that the majority of the growth has come from recommendations, the business reports that the programme receives close to 2500 downloads every day. Earlier this year, 12 percent club app introduced its P2P lending service to employees.
12 Club BharatPe just raised $370 million in a primary and secondary mix as part of a Series E investment round, led by new investor New York-based Tiger Global Management, to reach India's coveted unicorn league at a valuation of $2.85 billion.
What is P2P lending?
- 12 percent club app lending is not a new feature.
- In 2017, the Reserve Bank of India had brought this service under its regulatory purview.
- Even at the time, there were more than 20 12 P2P lending players in the market but RBI’s regulations ensured only the serious ones with watertight business models remained in the sector.
- In 12 club p2p lending, users sitting on idle money provide loans to potential borrowers identified by the service provider.
- These 12 percent club app lenders then receive payments from the borrowers on a set basis — either one time, or in equated monthly instalments.
- After RBI issued its regulations in 2017, the space saw a spree of fundraising
- 12 club p2p Involving some of the existing players in the segment.
- Some of the major companies operating in this space include RupeeCircle, Finzy, IndiaMoneyMart, etc.
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What are the risks?
- One of the biggest risks associated with this kind of lending is the non-repayment of loans.
- Given that 12 percent club app lending is a form of unsecured loan, there is no guarantee put up by the borrower for the lender to redeem in case of a default.
- However, the unsecured nature of the loan is also the reason behind the high return on investment.
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About BharatPe 12 percent club app?
- “Consumers on the 12 percent club app can invest their savings anytime by choosing to the lend money through partner 12 club p2p
- Additionally, a 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.
- 12 club bharatpe said there will be no processing charges or pre-payment charges on the consumer loans,
- A number of factors would be used to determine loan eligibility, so it also added.
- Including consumer’s credit score, shopping history using Payback loyalty system or the payments done via 12 Club BharatPe
- Consumers investing via app can put in a request to withdraw their investment anytime, partially
- Or completely, without any withdrawal charges.
- They can start by investing Rs.1,000 and the upper limit for investment by an individual is currently set at Rs. 10 lakh.
- The company said this would be increased to Rs. 50 lakh over the next few months.
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Conclusion
The launch of the 12 club P2P lending by 12 percent club app shows how fin tech companies are attempting to provide innovative features while retaining captive audiences inside the ecosystem and enabling them to earn and borrow at rates that are competitive with the market.