Everyone needs money to grow and prosper in their life. It is extremely necessary for a country to have a sound credit structure and to provide quick credit for the needy. Private lending companies have come up and have started exploring this sector.
LenDenClub is one of the first peer to peer lending website. Peer to Peer (P2P) lending enables individuals to borrow and lend money without any intermediaries. Mr Bhavin Patel started LenDen Club which is India’s largest peer-to-peer lending platform. He has a decade long experience in the financial service sector and has worked diverse verticals – lending business; operations, ERP solutions, fundraising, credit automation and some others. He has cofounded Span Analytics, an NBFC consulting organisation. He has helped the NBFCs in achieving scalable operations while helping them raise funds through securitization. He nurtures the belief that lending automation can play a huge role in the financial inclusion goal in India which has laid the cornerstone for LenDenClub.
LenDenClub aims to foster financial inclusion by leveraging technology to support borrowers with hassle-free loans, even in the remotest parts of the country, while providing a new-age investment option for investors. Listing only pre-verified loans, LenDenClub offers investors a convenient medium to browse thousands of loans to earn better than fixed deposits, mutual funds etc. With 100% funding record for its borrowers, LenDenClub currently enjoys a user base of over half a million and disburses on an average 90,000 loans annually. While the platform hosts investors across India ranging from small-time entrepreneurs to NRIs, the borrowers are currently active in 7 states of the country.
How Did Lendenclub Come Into Existence?
The first stroke for the starting of the company came with personal experiences from people. It stems out from an instance when the CEOs friend needed funds and no one was lending the money to him. This was the first stroke for development of this project, fulfilment of needs of people was the main inspiration.
USP Of The Company
The biggest USP of the company is the Ultra-short-term cash loan it offers. The focus is on delivering money to borrowers’ bank accounts within a few minutes/hours. None of the p2p platforms might have processed the number of loans which LenDenClub has processed and that is why it is considered the best.
Kinds Of Loans Available
LenDenClub’s any purpose personal loans could help you fulfil any personal requirement or tackle a problem you are dealing with. The company supports one with almost everything; from paying problematic credit cards to arranging a vacation for the family; from family functions to home renovation; from the purchase of used car/ new bike to managing a medical emergency. One can select his/her purpose of borrowing and then go ahead to find the perfect peer from the distinct options available.
Growth Of The Company
LDC, being a product company, offers the best working solution to the users’ problem. Providing investment options to individuals and institutions and doing everything with a certain standard of excellence. India currently houses more than 250 million salaried individuals. Majority of them aren’t covered by traditional credit providing institutions. The company has reached almost 2 million out of them, which is less than 1% of the available user base in the country. LDC is currently operating in 6 states and assessing a couple of lakhs of borrowers from these states. Till date, LDC has disbursed more than 75,000 loans through there platform. While doing so, the company has also generated 16.5% of net returns(annualised) for the users who are lending/investing on LenDenClub platform.
Future Prospects Of The Company
The growth of the organisation has been extremely powerful till now. In the last 12 months, the company grew by 4-fold. However, time being, they are expecting to remain flat while the country is going through the COVID-19 effect. This is a challenging time for the whole economy and thus for them. However, they expect faster recovery as soon as the effect of COVID-19 goes down and the current lockdown period is over. Once Indian economy rebounds, they expect going on the growth trajectory again, similar to what it was in the last one year.
LenDenClub is a perfect solution for credit taking needs, if any. Instead of falling into the vicious cycle of informal debt, one can always go ahead with LDC so that people can help people and boost them in ways like never before!