5paisa Loans Blog

Say no to loans, yes to lend!

By Anurag Srivastva | 20 Mar 2020

Debt makes Indians quite cautious. Most people fear that if you borrow it increases your liability and you may not be in a position to repay the loan. But, how about being on the other side? How about being a lender rather than a borrower. What you effectively are doing is to invest in borrowers after reviewing their track record and repayment capacity thoroughly. That is the world of P2P lending.

P2P has few entry barriers

If you believe that you need a lot of money to be able to lend, think again. In P2P lending, you can start lending and earning returns with as little as Rs.25,000 to Rs.30,000. If you can consistently earn about 20% annualized on Rs.30,000, it can grow into a tidy sum over a longer time frame. Do you know how much it can grow to? Here is a sampler.

If you were to deploy a sum of Rs.30,000 today to P2P lending and let it compound at 20% on an annualized basis, it can grow to Rs.11.50 lakhs over a time frame of 20 years. Of course we are assuming that over time RBI will allow greater exposure to individual lenders, but will happen anyways. Your total outlay is just Rs.30,000. Just put it in a P2P lending platform and watch it grow.

A 20% return will obviously entail some risk but that risk is fairly well managed with solid credit reference checks, use of technology and the supervision of RBI. So, even if you are sceptical about taking loans, you can always make your money grow on the P2P lending platform.