12 Percent Club - Bharat Pe

P2P LENDING BY 12 PERCENT CLUB- Bharat Pe

With the launch of its product, 12 Percent Club, BharatPe, a provider of financial services and merchant payments, is expanding its consumer offering by entering the peer-to-peer (P2P) lending sector.

Individual investors will be able to invest and borrow money at 12% interest through the app courtesy to BharatPe's peer-to-peer service.

Start earning up to 12% interest on your investments today!
For the consumer product, BharatPe worked with LenDenClub, and it is already accepting applications for Liquiloans. With the same partners, the fintech has implemented peer-to-peer lending for its merchants in 2019.

To sustain low delinquencies, P2P lenders would provide funding to BharatPe's merchants on its platform.

Furthermore, it gives investors complete freedom to leave the offering at any moment.

Grover anticipates that the usual loan period on the platform will range from three to twelve months. Currently, $5 million per month is being contributed by individual investors to BharatPe's "12 Percent Club," and $1 million in loan payments are being made.

Although referrals played a key role in the majority of the growth, the company still reports that the programme receives close to 2500 downloads daily. The P2P lending programme was made available to BharatPe's personnel earlier this year.

A Series E investment round, led by new investor Tiger Global Management of New York, saw $370 million invested in 12 Club BharatPe as a primary and secondary mix. The business has made it to India's coveted unicorn league and is valued at $2.85 billion.

What is 12 Percent Club's P2P Lending ?

• 12 Percent Club P2P lending has been around for a while.
• In 2017, this service became under the regulatory purview of the Reserve Bank of India.
• Even though there were more than 20 P2P lending companies available at the time, the RBI's limitations ensured that only the reliable players with sound business plans survived.
• Users who have extra cash can lend it to prospective borrowers who have been selected by the service provider through peer-to-peer lending.
• Then, according to a prearranged timetable, the borrowers make payments to these lenders, either all at once or in equal monthly instalments.
• Several of the established companies in the market went on a fundraising frenzy after RBI announced its rules in 2017.
• Rupee Circle is one of the most successful companies operating in this industry.

What Kinds of Risks Does the 12 Percent Club Pose?

• One of the biggest risks associated with this sort of financing is loan non-repayment.
• Peer-to-peer lending is an unsecured loan kind, therefore there isn't any guarantee from the borrower that the lender would make payments in the case of a failure.
• The loan's high return on investment in comparison to other debt products might also be attributable to the fact that it is an unsecured loan.

What's up with the 12 Percent Club BharatPe?

• The 12 Club BharatPe app gives users the flexibility to invest their savings whenever they choose by giving them the option to lend money through P2P NBFC partners of BharatPe.
• According to their convenience, consumers may also use the 12% Club to obtain collateral-free loans up to Rs. 10 lakh with a 3-month period.
• According to BharatPe, processing and prepayment costs for consumer loans won't be charged. Additionally, the customer's credit rating, history of Payback loyalty programme usage, or use of 12 Percent Club QR to make payments will be taken into account when determining loan eligibility.
• Customers who invest using the app have the choice to withdraw their funds at any moment, in full or in part, without paying any fees. A single investor may now contribute up to Rs. 10 lakh, with a minimum investment of Rs. 1000. The company claimed that this will increase to Rs. 50 lakh over the coming months.
• A single person can now invest up to Rs. 10 lakh, with the minimum investment being Rs. 1,000.
• The company claimed that this will increase to Rs. 50 lakh over the coming months.

CONCLUSION

Fin Techs are aiming to offer cutting-edge features to maintain captive audiences inside the ecosystem and give them the ability to earn and borrow money at rates that are acceptable compared to the market with the launch of 12 club BharatPe lending.