LenDenClub Launches Automated P2P Lending Platform Adhering to Proposed RBI Guidelines

MUMBAI, July 20, 2016 /PRNewswire/ --

LenDenClub has launched its new version of P2P lending platform with features such as end-to-end automation of lender-borrower transaction cycle right from registration, document verification, credit analysis, transaction matching to report generation. An algorithmic-based program, built based on artificial intelligence, will be used for reviewing borrower's creditworthiness. For the company, the upgradation of P2P platform will accomplish a major milestone and prepare them for payment and digital signature automation to bring 100% automation in lending process through right technology for borrower identification, data collection, digital signature usage, payment automation, etc.

With this, the company has initiated the first leg of its long-term goal in creating a platform that can assess last mile borrowers, a feature that is currently unavailable even in the majority banks and NBFCs. The highlight of the program is an algorithmic model which is coded to identify borrower's financial trend and allocate credit score based on the trend. The rating will automate allocating interest cost vis-à-vis risk factor.

Commenting on the development, Mr. Bhavin Patel, CEO of LenDenClub said, "With this new platform, we have fulfilled key regulatory requirement set by RBI in its Peer to Peer Lending consultation paper. In addition, zero manual intervention shall not only expedite entire process, but shall also facilitate in mitigating defaults through unbiased and accurate credit risk analysis. This will help us in addressing the biggest problem of Indian personal loan borrowers, which is speed of loan processing."

On the technological aspect, Mr. Dipesh Karki, CTO of LenDenClub, elaborated, "The new automated features shall curtail entire lender-borrower transaction cycle from 1 to 2 days to 12 hours, making the process complete on the same day of the application submission. In addition, the platform shall guarantee confidentiality of customer data, which will be easier to maintain report submission process on financial positions of each members, loan arrangement each quarter and complains redressal mechanism. We do have plans to use technology like block chain in our transactions. This platform is made by keeping such future aspects in mind."

The company had successfully raised seed funding recently, a part of which was used to develop more efficient and robust P2P lending platform in India. The company expects registration traffic to grow in the near term as an immediate outcome of automation cumulating into revenue conversion due to faster deal closure.

About LenDenClub:

LenDenClub is a peer to peer lending platform, founded in 2014 by Bhavin Patel and Dipesh Karki, to help salaried individuals to get fast personal loans. The platform connects borrowers to individual lenders which uses a combination of traditional and non-traditional data points to validate credit-worthiness of borrowers. The company has an average borrowing average of Rs.85,000 and charges 1-3% commission by to arrange these loans.

Media Contact:
Bhavin Patel
CEO, LenDenClub
[email protected]
+91-7045850594