HomeMedia CenterP2P Platforms: Millennials are the ones to come on board to lend or borrow

P2P Platforms: Millennials are the ones to come on board to lend or borrow

An analysis done by LenDenClub from the annual data of four lakh users of its platform

The young are restless and desire money, and they want it instantaneously. The emergence of peer-to-peer (P2P) lending platforms has led to a culture that allows millennials – who may otherwise not be able to get loans from banks – to borrow easily, with little credit evaluation. Another individual sits on the other end of the platform, ready to lend money and exploit the helpless borrower, with hopes of earning higher interest rates; all in the name of ‘investment.’

LenDenClub, a P2P platform, has analysed the annual data of four lakh users on its platform and has come up with a report titled “The 2019 Lending and Borrowing Behaviour.” There are close to 20 P2P platforms in India. LenDenClub has looked at borrowers’ age group, typical borrowing patterns, lenders’ background, age-group and investment habits of people on P2P platforms across India to get a better picture of who exactly comes on board. Let’s delve on the key points from the study.

Millennials borrow heavily for emergencies

The findings depict that 80 per cent of the borrowers are under the age of 35 years. Also, on P2P platforms, 71 per cent of the borrowers have monthly incomes of less than Rs 30,000. Harshvardhan Roongta, Principal Financial Planner at Roongta Securities points out, “Most people who borrow on P2P platforms are those who don’t get loans from banks because of a weak credit profile or very low income.”

It’s being observed that the borrowers on P2P platform lack basic discipline of saving for emergencies. They are unable to pay credit card dues, school fees, house rent, or save for any medical emergency in the family, etc.

They must create an emergency corpus. Dev Ashish founder of StableInvestor.com advices, “As a thumb rule and for starters, it is advised to keep at least three to six months’ worth of basic living expenses as contingency fund.”

According to the study, the proportion of new borrowers on P2P platform is 63 per cent. The proportion of repeat borrowers is 37 per cent. The loan frequency of repeat borrowers is three times. This ratio means that borrowers are getting addicted to borrowing from P2P platforms for emergency and aspirational needs.

Those with a business background lend the most

The findings reveal that 67 per cent of the lenders are millennials (under the age of 35 years) and they are lending on new-age digital platforms such as P2Ps to earn interest income. Customers from business backgrounds topped the chart, along with CXOs (including chief executive officers and chief financial officers), mid-managerial levels persons and salaried individuals as lenders on the platform.

According to the study, 74 per cent of the lenders make investments of up to Rs 1 lakh on P2P platforms. Roongta has this piece of advice to lenders: “Do not allocate more than 10 per cent of your investible surplus to P2P lending.” Also, it’s recommended that you diversify your lending across multiple borrowers with different risk grades to reduce default possibilities. However, while lending on P2P platforms, be prepared for defaults.


Credit: https://www.moneycontrol.com/news/business/personal-finance/p2p-platforms-millennials-are-the-ones-to-come-on-board-to-lend-or-borrow-5036541.html

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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