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5 Common Mistakes Investors Make

P2P lending is one of the best investing platforms and is also used by millions to borrow money online, across the globe. It carries a moderate risk and has high returns than equity or FD investing.

Lenders who are new to it often make a number of mistakes, which may cause loss of money. You do not always need to learn by mistakes. Here are some of the biggest mistakes by lenders. Know them, and avoid them to get the best returns on your investment, while also lowering your risks.

1. Lack of Diversification in Portfolio

Lack of diversification is like putting all your eggs in the same basket. It is best to divide the portfolio and invest in a number of individual borrowers so that you suffer from the least of defaults. Invest no more than 0.5% of your money is any 1 borrower, to enjoy a better stability.

2. Investing At a Single Online Borrower

There are number of the online registered borrowers on P2P lending platform like LenDenClub where you can invest money. These are the list of verified borrowers who seek to borrow money online, as these online platforms are deemed to be the most reputed, and popular. On the contrary to what many people think, it is better and less risky, when you invest in different and multiple borrowers. Even if one borrower makes default, your investment remains secure.

3. Investing Only in Low-Risk Loans

Nobody wants to incur losses and suffer from defaults. That is why people mostly invest in loans in the low-risk band range. However, the returns of the low-risk investments are also quite low, and you will get returns @ of around 12-15%. If you create a balance portfolio and also invest in few high-risk loans, your interest will increase to around 15% to 18%. High risk investors do get returns beyond 35%.

4. Expecting Fast Payments

You may expect fast payments on all your investments, this would be a mistake as the P2P borrowers very often lag on the returns. So, always be ready to experience delayed repayments, when lending money on the P2P online platforms and websites.

5. Not Checking on the Online P2P Lending Platform

It is very important for the investor to choose a credible online lending platform for P2P investing. For instance, LenDenClub is one of the most reputed P2P lending platforms in India. There has never been a Legal Recovery situation on the website, as it screens both lenders and borrowers through the best of software and other measures. The company also has a “Lender Protection Fund” so that your investments are always secure.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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