P2P Lending Report: LenDenClub Identifies Working Capital as Key Driver for Loans in 2022-23

According to the report by LenDenClub, young and tech-savvy Indians are much ahead of the previous generations when it comes to borrowing or even accessing the platform for a new asset class as an investor. According to the report released by LenDenClub, millennials belonging to the age group of 21-30 years were the most active borrowers (48%) and the age group of 31-40 years investors (36%) on its platform. This was followed by the cohort belonging to the age group of 31-40 years accounting for 39% in case of borrowers and the age group of 21-30 years 23% in case of lenders.

Hyderabad topped the chart in terms of people having the highest credit demand. While, the highest number of lenders hailed from the city of Mumbai. Other major lending and borrowing markets were Bangalore, Vadodara, and Pune, showing a clear dominance of west and south.

It further stated that working capital accounted for the highest number of digital loans that were availed during the year. This is also a clear indicator of growth in the Indian economy as the quantum of these loans is in the few thousands of crores. LenDenClub experienced a significant surge in credit requests for medical emergencies, making it another prominent reason for borrowing. Following closely behind were advance salary and home renovation, which also contributed to the high demand on the platform. A significant portion of borrowers, approximately 40%, have a monthly salary ranging from ₹10,000 to ₹20,000, while the average loan amount stands at ₹75,000.

Salaried professionals ranging from CXOs to mid-managerial level, topped the chart as investors on the platform. The report further stated that 48% of the amount invested was more than ₹10 lakhs. Owing to the monsoon season, June (2022) to September (2022) were the top three months when demand for credit was the highest. Whereas, during February 2022 and March 2022, the demand for credit was the least.

Bhavin Patel, Co-founder & CEO, LenDenClub said, "We noted a surge in demand for working capital, indicating that small businesses are increasingly turning to digital loans for their financial requirements. During the second half of the financial year, LenDenClub placed a significant emphasis on this aspect. We have successfully disbursed a few lakh loans through this product, which has proven to be one of the top-performing unsecured loan assets. The borrowers have exhibited commendable repayment behavior due to a cash flow controlled repayment mechanism. By extending loans to these borrowers, we actively contribute to the Finance Ministry and RBI's efforts to facilitate lending to small businesses. Our platform has been instrumental in providing access to credit for these critical needs. The lenders on the LenDenClub platform can take pride in seeing their invested money being effectively utilized through these loans."

LenDenClub is the largest peer-to-peer platform in India, having disbursed more than ₹11,000 crores worth of loans. In the past three months, its flagship product, FMPP, has provided returns of more than 10% p.a. to 100% of the investors. The AI & ML-powered platform encourages investors to start investing in P2P lending with a minimum investment of Rs 10,000 and has an active customer base of over 85 lakh users.

About LenDenClub

LenDenClub is India's largest Peer-to-Peer (P2P) Lending platform, owned and operated by Innofin Solutions Pvt. Ltd., an RBI-registered (NBFC-P2P). It provides an alternate investment opportunity to investors or lenders looking for high returns by connecting them with creditworthy borrowers looking for short-term loans. In the past three months, its flagship product, FMPP, has provided returns of more than 10% p.a. to 100% of the investors. The AI & ML-powered platform encourages investors to start investing in P2P lending with a minimum investment of Rs 10,000 and hyper-diversifies their funds to as low as ₹1 per borrower, leading to risk-mitigated and stable returns to investors.

Founded by Bhavin Patel and Dipesh Karki, LenDenClub has disbursed loans of over ₹11,000 crores and has an active customer base of over 85 lakh investors. In 2022, they also launched a corporate venture capital for early-stage Tech and FinTech startups, offering them acceleration through mentorship and access to capital.

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