All you need to know about investing with P2P platforms



Jun 27, 2022

Do you want to earn more money by investing your capital? Or do you prefer a safer investment option that protects your capital? Investors always face the dilemma of choosing between the two.

Obviously, the investments with higher returns like equity and Mutual Funds also carry high risk. On the other hand, FDs provide lower returns and are relatively less risky. Diversifying your investments across different sectors and instruments can help minimize the market risk to some extent. But, it may not always help, especially in a downward market trend. 

Diversification has its limitations. However, it can surely reduce your risk and help you increase your profits. If you want to diversify your portfolio, a P2P lending investment can be the perfect fit. In addition to being free from market risk, it also provides higher fixed interest income compared to traditional FDs. This blog aims to tell you more about P2P lending and help you diversify your income using P2P investments.

What is P2P Lending?

P2P or Peer-to-Peer lending is direct lending between individuals who have money to invest and those who need money to meet their expenses. The P2P lending websites provide an online marketplace for investors as well as borrowers where they can carry out direct lending transactions. 

In return for the loan, the borrower repays the amount in monthly EMI payments that include the amount of principal and interest. 

How Can You Earn Passive Income Through P2P Lending?

What type of income can be called passive income? By definition, passive income means the income for which you do not have to make any active efforts. Once you invest your money, it provides recurring returns. Here are some of the popular sources of passive income:

  • Rental Income
  • Royalty for Writing Books or E-books
  • Publishing Online Blogs 
  • Investment Portfolio
  • Investing with P2P Platforms

P2P lending is an exciting opportunity to earn passive income. You just need to create your account on platforms such as LenDenClub, find creditworthy borrowers to lend using their powerful AI system and enjoy truly passive income on your investments.

Online P2P a New Age Investment for Millennials

Investing with an online P2P platform is very simple. Here are the steps you can follow to create a passive income using the LenDenClub P2P platform and also diversify your investments.

Step-1: Visit the LenDenClub website or mobile app (available on Android & iOS)

Step-2: Sign up by providing all your basic details, including your PAN Card

Step-3: Choose your investment preferences 

Step-4: Deposit the amount you wish to invest through the online P2P platform

Step-5: AI segregates your total capital and invests the amount in multiple borrowers. This reduces the overall risk of your investment. 

Step-6: You start earning returns in the form of EMI repayments from the borrowers. Hence, you can start generating a passive income by investing your funds through an online P2P platform.


Benefits of P2P Lending

What exactly are the benefits of P2P lending, and why is it a rapidly growing investment opportunity? Here are the major benefits of investing in P2P lending.

1.1 Easily Accessible Online

Unlike traditional banks or Financial Institutions that require the investors as well as borrowers to visit the offices to carry out transactions, P2P lending platforms in India operate online. Hence, they are easily accessible to any person. The complete integration with technology makes P2P lending a new-age investment opportunity for all, especially young investors. Anyone can invest any time, anywhere, with P2P lending platforms. 

1.2 Reduced Paperwork

Unlike conventional methods and financial institutions, P2P lending platforms work with minimum paperwork. Not only does it avoid paper wastage, but it also saves time. All the legally binding contracts and agreements are carried out through the website with digital acknowledgment.

1.3 Faster Transactions 

Since the complete lending transaction is done online, you can invest with just a few clicks. As soon as you sign up and create your profile, you are to complete your KYC on the P2P website. Once this process is completed, investors are all set to explore the investment avenues.

1.4 Higher Income for the Investors

The major problem with fixed interest investments like bank FDs is that they provide lower returns to the investors. This is because of the high margins that they operate on. On the other hand, P2P lending platforms eliminate these intermediary commissions and pass on the maximum benefit to the investors. Hence, they provide much higher returns to investors as compared to traditional bank FDs. You can earn a regular income in the form of EMI repayments from the borrowers.

1.5 Regulated by the RBI

The biggest points of concern for every investor are the genuineness of the online platform and the safety of their invested money. P2P lending platforms in India are regulated by the guidelines of the RBI, and they have to own a legitimate registration certificate from the RBI to operate as an NBFC P2P. Hence, investors can expect their funds to be safe from online fraud.

1.6 Diversified Investments

As per the RBI guidelines, you can start investing on P2P platforms with a small amount and also choose multiple borrowers to diversify your portfolio. As a result, the default risk is reduced. This makes P2P lending one of the most suitable types of investments, even for beginners. The “millennials,” as they say, are just starting with their careers. P2P lending can be one of the best new-age investment opportunities for Millennials.

LenDenClub: The Best Online Lending Platform in India

LenDenClub is one of the biggest and fastest-growing P2P lending platforms in India. The LenDenClub investment platform provides ways to diversify your income and earn higher interest. Here are some of the benefits of choosing LenDenClub:

  1. RBI Registered NBFC-P2P
  2. LenDenClub’s website is protected through encryption so that the transactions are immune from online fraud
  3. Higher Returns up to 12% p.a. are almost double the returns provided by bank FDs.
  4. Borrowers are examined on 200+ data points before listing on the website
  5. LenDenClub faced a default risk as low as 3.48% in Q2 of FY 2022
  6. LenDenClub allows maximum diversification by allowing you to invest in multiple borrowers.
  7. With the AI-powered system of LenDenClub, you can sit back and enjoy the interest while the AI auto invests your capital in suitable borrowing prospects


Looking at the growth of P2P lending platforms in India, it is evident that peer-to-peer lending is the future. Not only does it save time & effort, but it also provides easy access to funds and investment opportunities compared to traditional banks and financial institutions, they also provide higher returns by eliminating the middlemen.

Register with LenDenClub to start earning passive income, Now!