In India, the top 10 peer to peer lending sites are safe to lend. To know which platform is safe to lend, you must go to their website, and check about the founders of the platform. Also, you must call the company’s number, and inquire about the loans they have given. What do they do when someone delays the EMI payments? If someone says that they had zero payment delays, then you must avoid that platform. You must also ask for references (lenders) who have invested earlier in LoanMeet or another peer to peer lending platform.
I believe that you also want to know whether P2P lending is 100 % secure investment. First of all, no investment is 100 % risk free. Without risk, there is no reward. If you are looking for 100 % secure investment, then I suggest to put money in fixed deposits, as those are indirectly backed by government of India.
For good returns on P2P lending, we suggest the below approach.
1. Spread your investments with multiple borrowers
If you want to invest 10 Lakhs, then you should not give more than 1 L to a single borrower. If you plan to invest 5 L in total, then invest 50 K per borrower.
2. Choose borrowers at good P2P lending sites, such as LoanMeet
3. Assume 3 – 5 % NPA at P2P lending sites
Run away from sites that promises 0 % or less than 1 % NPA. So far, there has been zero NPA on our sites, but we still prepare our lenders for 3 – 5 % NPAs (average NPAs in personal loans at Indian banks ).
4. Avoid P2P lending sites that promises 100 % lender protection
For 100 % lender protection, the P2P lending site has to put 10 – 20 % of all loans disbursed in an escrow account. Please get details of collateral before investing in the 100% secure platform.
5. Start out with a small investment of Rs 10 K or 25 K on a P2P lending site.
Below are the steps to become a lender at LoanMeet.
- Open your web browser on your laptop or mobile phone
- Enter loanmeet.com
- Click “Invest” at the top
- Fill your basic details and start earning 20% or more on your investments
- Please reach out to firstname.lastname@example.org or 7259355400 for questions or concerns
The average returns on P2P lending would be around 20%; the final returns depend on the risk profile of the borrowers. We at LoanMeet are extremely happy that we were able to help individuals accomplish their dreams. The lenders on our platform are also happy as they are getting regular EMIs from him. We enabled a mother send her daughter to a good school in Bangalore, and we helped a girl take care of her mother’s medical expenses. We hope you join the financial revolution, and get good returns on your investment.