HomeMedia CenterBhavin Patel of LenDenClub on why you should choose it over FDs, MFs

Bhavin Patel of LenDenClub on why you should choose it over FDs, MFs

The Peer-to-Peer (P2P) lending market in India is witnessing a sudden traction with investors getting average returns of 13%. Traditional investment options have of late been not able to satiate the thirst of investors looking for double-digit returns. As a result, the P2P platforms have seen a rise in the number of registered lenders. LenDenClub is an RBI registered NBFC-P2P lending platform, which together investors and borrowers on a single platform. In an interview with Money9, Bhavin Patel, co-founder and CEO, LenDenClub, talks about how the business has fared in the midst of Covid-19 mayhem and the various risks involved along with the various features of the P2P model.

Edited excerpts:

Q: It’s been one year of the pandemic phase in India. How has been the business till now?

By the end of FY21, Lendenclub platform registered a voluptuous growth of 900% and 166% among investors and borrowers respectively as against FY20. Whereas a more tightened credit screening mechanism helped us to put a drastic check on our NPAs’ which was reduced by 32% and brought down to 3.94%. In terms of numbers, we are doing 7 times more today vis-à-vis 15 months back at around 80% of the headcount then. This is big proof of how seamlessly we have adopted technology to our advantage and grew through the challenging pandemic period.


Q: There were reports of harsh recovery measures during the first wave of Covid-19. How is the second wave different? Have there been any defaults?

Bhavin: Defaults have always been a part of the lending business. The intensity changes based on economic cycles or during crises like covid-19. So far, we are in a good position due to our belief in technology & our advanced credit algorithms. We survived the first wave of covid successfully when it had hit us last year. However, it was more challenging as it was an unprecedented event. This year, it will be better than last year as we already have a playbook to follow. Different covid-19 waves may be challenging as there could be lockdowns during each wave. However, this time as well as in future, it will be more predictive; unlike 2020 one. At this moment, we foresee the little impact on loan repayments. However, those are already factored in loan RoI. We expect an almost nil impact on investors’ returns.

Q: Why do you think P2P business is growing as an alternate asset class for the investors?

Bhavin: Peer-2-Peer Lending or P2P Lending is an alternative asset class growing globally, which offers as much diversity and choice. The concept in itself is not new, however, its potential and reach has increased drastically over the last some years. Thanks to the digital push and technological upgrade of retail and HNI investors, they are able to understand new investment classes much faster.

Offering investors an average portfolio 13% XIRR in the last FY, P2P lending is today emerging as one of the most potential alternative investment asset classes. It is performing way better than other fixed-income investment options such as — fixed deposits, mutual funds, etc.

Q: What are the profiles of the investors on your platform, the average amount they invest, and the average range of returns they have made in the past year?

Bhavin: At LenDenClub, investors belonging to the 31-45 years of age bracket dominate the platform for its majority investment volumes. They are typically the mid-age, tech-savvy, population with the financial aptitude of investing money digitally. Salaried professionals along with CXOs to mid-managerial level topped the chart as investors on the platform. While investors on our platform invest anywhere in the range of Rs. 500 to Rs.40,00,000, the average investment amount has been more than a lakh rupees. These investors have been enjoying an average portfolio return of . 13%.

Q: There are other avenues available why should one opt for P2P lending to get a credit facility?

Bhavin: India is a vast market, and accessing credit facilities is still a distant dream for many people in the country, especially in tier II, III and rural regions. Consider the case of Gold loans – there are reports that private gold lenders are demanding more collaterals for offering loans to the borrowers and their rates are also exorbitant. The real reason behind this is the unavailability of the legitimacy of their business. In the current time, not everyone will have enough gold to avail credit from the gold investors. In such a scenario, it becomes a better option for loan seekers. Additionally, one need not have to step out to any branch to avail loan. One can get the credit facility simply by applying from a smartphone.

Q: How much is charged from the borrowers and the investors for the services offered?

Bhavin: There are several charges at all stages. However, looking at a business model level, we charge 2% to 5% processing fee from borrowers and 2% fee from investors when they earn their interest income. These rates are return connected. If they get higher returns, we get higher fees. If they earn lesser returns, we make less money. In short, it’s linked to loan performance on the platform.

Credit: Money 9

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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