HomeBlogInvestorAn Alternative Asset ClassWays to Lend Money Online and Make a Healthy Profit with P2P Investment

Ways to Lend Money Online and Make a Healthy Profit with P2P Investment

Do you know that you can lend money to individual borrowers online? Traditionally, only banks and Financial Institutions could accept deposits from investors and lend money to borrowers.

But, getting a loan through a bank is quite a complex task. On the other hand, banks have high operating costs. So, the interest paid to the investors on deposits is too low.

FDs, considered one of India’s best investment options, have provided 5-6% returns p.a., which is not enough to cover even the inflation. Thanks to the IT industry and the internet revolution, fintech websites have emerged that provide a real-time marketplace for investors to lend money online.

P2P lending in India has grown by over 100% during 2017-2021. More and more people are investing in P2P lending because of easy access, lesser compliances, and higher returns. The industry is set to reach the USD 10.5 Billion mark by 2026, making it one of the most sought-after investment options.

This blog explains how you can lend money online with platforms like LenDenClub and maximize your earnings.

How to Lend Money Online (and Make a Profit with P2P Investment)

P2P lending provides access to easy credit, which is restricted by the heavy compliance in banking. If you also wish to earn more on your investments, you can register on these online lending platforms and lend your money to borrowers against a monthly repayment.

The interest earned by investors is much higher in P2P lending compared to bank FDs due to direct lending and borrowing. Since you receive monthly repayments, you can reinvest this amount to earn compounded returns on your money.

What does “lend money online” mean?

If you want to be a money lender in India, you need to follow the rules and regulations of the Reserve Bank of India. This includes obtaining a license and putting appropriate checks in place to safeguard the investors’ money.

LenDenClub is an NBFC-P2P registered with the RBI that allows you to directly lend your money to creditworthy borrowers and earn an interest income.

When you offer online peer-to-peer loans, you act as a lender. Hence, you need to carry out thorough background checks on the borrowers to be sure. To make life easier for you, LenDenClub evaluates the borrowers based on 200+ unique data points so that only credible borrowers are allowed on the platform.

Do you wish to lend money online without having to go through all these troubles? If yes, LenDenClub is your go-to solution. It is one of the leading peer-to-peer lending platforms that connect potential investors with borrowers.

Here’s how you can start P2P lending and improve the returns on your portfolio.

How do I start lending money online with P2P?

If the high returns of P2P investments compel you to choose this investment strategy, all you need to do is choose the right P2P lending marketplace like LenDenClub and start investing. Here are a few simple steps you need to follow to start investing and reaping the benefits.

Step-1: Learn about P2P investing

First things first – it’s important to get the complete information before lending money online in India. You need to pay attention to how the lending system works, what are the risks and benefits involved in the investment, and how you can easily get started with it.

P2P lending is a debt-based investment opportunity. There is no impact of market volatility on your investments, i.e., no market risk. P2P lenders might face default risk on their loans, which is caused due to the borrowers not repaying the money. To reduce this risk, P2P platforms employ robust borrower evaluation systems and have strong collection procedures in place as well.

Top P2P lending platforms in India must maintain absolute transparency and disclose the correct figures related to default and return on investment on their websites. LenDenClub allows you to earn good returns. with low default rates of 3-4%. Here’s how you can start lending with LenDenClub.

  • P2P lending in India is regulated by RBI & LenDenclub is an RBI-registered NBFC-P2P.
  • To start your P2P lending journey, you can visit the LenDenClub website or mobile app and register as an investor.
  • You need to provide your basic information.
  • Once your KYC is complete, you can add funds, and the AI-based interface shortlists credible borrowers based on your investment preferences.
  • The platform also allows you to spread your investments across multiple borrowers to diversify your risk.
  • The lending process through LenDenClub is completely automated, and no manual paperwork is needed.
  • The money you lend is transferred to the borrowers through an Escrow Account to ensure the safety of your funds.
  • To earn higher returns, your money on the platform is reinvested, allowing you to enjoy the benefits of compounding.

You can read an article about P2P lending to know more.

Step-2: Set up a P2P investing account

By now, you know how to lend money online in India. But first, you need to set up your P2P account. For this, you can access the LenDenClub website and fill up all the details to verify your account and start investing.

Alternatively, you can download the LenDenClub mobile app from Android or iOS and set up your investment account. After registering your account, you can start investing and earning passive income with returns.

Step-3: Track your progress

When you lend money to people online, don’t forget to keep track of the progress. Tracking your performance at the chosen platform will help you understand how your profits accumulate and the returns. You can make changes in your investment portfolio, connect to more borrowers and improve your investment returns by tracking your performance.

With LenDenClub, you can easily access your investment dashboard. It helps you to monitor your investment and return figures and allows you to make necessary changes to your portfolio.


P2P lending in India is increasing due to the high returns and growth potential it offers to investors. If your goal is to diversify your investment portfolio, earn good returns, and reap the perks of passive investments, register now with LenDenClub, the leading P2P platform in India trusted by over 8 million users.

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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