HomeBlogKnowledge CenterQ3 – 2020 Outlook From The LenDenClub Chief Executive Officer

Q3 – 2020 Outlook From The LenDenClub Chief Executive Officer

The economic decline due to the COVID-19 crisis has had an adverse impact across the FinTech sector in India, and not being immune to this impact leads to the effects. India’s economic growth has contracted at the beginning phase of lock-down in near Q1 and Q2 of 2020. We have also observed that Lending activity has been impacted severely in Q1 and Q2 of 2020, but some revival was seen in May 2020 at the first phase of unlocking. 

Phase From Breakdown To Revival

We all observed liquidity crunches in businesses. Small businesses found it very difficult to abide by operations. The social distancing phases had been implemented to curb the spread of the disease, which led to having reduced consumption, thereby affecting the businesses and FinTech industry as a whole. 

Now that we have moved towards Unlocking, there is an improvement in the revival of the consumptions and the loan needs by businesses. It is leading growth for the Peer-to-peer lending sector. According to the TransUnion CIBIL Retail Credit Outlook report, it states that the money supply year-on-year growth had dropped to 10% in Q2 2020 from 12.5% in Q4 2019. But the fall is slowly seen moving upwards in Q3 2020 and gradually getting back to 12.5% in Q1 2021. India is entering the festival season, which started in August. Now, it’s a time that India’s consumption and demand will move north from its bottom in Q1. We expect that Q3 will remain as a bridge to return back to India’s high growth phase.

The P2P lending sector has no doubt quickly adjusted and adapted to the trials and tribulations of the COVID-19 pandemic. Now, it’s the other side of the coin ruling the game. This quarter is to be good for the sector and LenDenClub.

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

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