After CRED, BharatPe forays into P2P lending with 12% Club
New Delhi-based startup BharatPe said its latest consumer offering can earn lenders on the app up to 12 percent interest on their investments. CRED, last week, had launched a similar offering, CRED Mint.
Fintech giant Tuesday launched a new P2P lending product to enable consumers to lend any extra money they may have in their savings accounts to borrowers and earn higher returns on that amount versus traditional banking instruments.
Called 12% Club, the app will enable investors to earn up to 12 percent in annual interest rates and help borrowers borrow at 12 percent, much lower than what most financial institutions charge for personal loans.
The startup has partnered with RBI-approved NBCFs to offer this product. Consumers will be able to avail of collateral-free loans of up to Rs 10 lakh for around three months, without having to shell out extra processing or pre-payment charges.
"As we begin our journey on the consumer side, our focus will be to launch products that are industry-shaping, 100 percent digital, and easy to use. This one-of-its-kind product for consumers has been designed to ensure industry-best benefits both for lenders and borrowers," said Suhail Sameer, CEO, BharatPe, in a press release.
"We believe that 12% Club will strike the right chord with a diverse set of new-age digitally savvy customers - from young salaried individuals to professionals with disposable incomes, and the investors who park their funds in various financial instruments," he added.
Users who want to lend their money on the app can start by investing as low as Rs 1,000, and go as high as Rs 10 lakh. The limit will be increased to Rs 50 lakh over the next few months, the unicorn said.
The product has already received much interest, the New Delhi-based startup said. In the pilot phase, the app saw a monthly investment run rate of $5 million and a monthly borrowing run rate of $1 million.
The company hopes to achieve assets under management (AUM) for investments of $100 million and a lending AUM of $50 million by the end of the current financial year.
Kunal Shah-led CRED last week unveiled a similar product, CRED Mint, to enable P2P lending and borrowing, in partnership with Liquiloans. Mint will extend the loans via its lending product CRED Cash to community members who already use the app and its services, the startup said.
Edited by Suman Singh
