#2 Tracking My Portfolio in Manual Lending
In the previous blog, we discussed Manual Lending, from its definition to how it works and how you can manage your risk.
In today’s blog, we will talk about how you can track your Manual Lending portfolio.
What to track?
When you lend in a loan, it directly goes to the borrower’s bank account. Once the loan is disbursed, the borrower’s repayment cycle starts. The repayment date and repayment cycle for the investment differ depending on the loan. You can track all of this from the portfolio section in the app.
What you are going to track to see if your manual lending portfolio is performing or not are three things. The amount lent, the date of lending, the expected return, and the return received so far.
How do I track this?
To track the manual lending performance you will have to download the manual lending report (Available on iOS, Android and Web).
Steps to download the manual lending report:
- Login to the LenDenClub app or website
- Click on Portfolio from the Navigation menu
- Click on ‘Reports’
- Click on ‘Manual Lending Report’
- Select the date range for which you want to download the report
- Click on ‘Send Email’
Once you have requested the report, you should receive it in your registered email in a few minutes to a few hours depending on the volume of your lending.
How do I read the report?
The report you have received is an excel sheet. You need to download it.
Once the report is downloaded, you can see the following fields:
- Scheme ID: Unique identifier for the lending
- Investment Date: The date of lending
- Investment Amount (₹): The amount you have lent
- Interest Rate (%): The rate of interest at which the loan was lent
- Repayment Start Date: The start date of the repayment
- Tenure (months): The tenure for which the loan was lent
- Total Amount Received (₹): The amount you have received from the borrower
- Total Illustrative Receivable (₹): Expected receivable amount by the borrower
- Status: The active or closed status of the loan.
You can use this data to calculate the return of your closed loans. Here is how you can calculate the return:
Simple interest calculation:
Interest Earned x Principal Lent * 100 = Total interest % earned over the period
Annualized rate earned:
(Interest earned x Principal lent) / (Loan tenure / 12) * 100 = Annualized interest earned
By using these formulas you can easily calculate the return you have earned on your lending. Note that calculate this only on the loans which are closed to get the right picture, since in Open loans you may still expect repayments.
And that’s how you can track your portfolio of manual lending. Watch out this space to learn more about how you can select a borrower to lend in our upcoming blog post.
Team 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.