Headquartered in Mumbai, LenDenClub is an Indian P2P lending & borrowing platform that enables individuals to both get quick personal loans, or to become a lender and earn better interest on their savings.

Personnel Finance in India has evolved over the last few decades. Just a generation ago, it was challenging for our parents to build personal assets. Banks in India at that time did not see individuals as worthy borrowers until the end of the last century. The only options of funding unexpected demands for money were friends and relatives, or the friendly pawn-broker with whom gold could be pledged, or in case of large ticket expenses taking a loan against the provident fund was a common practice. Unorganized money lenders were the last funding options, that were available at exorbitant interest rate.

Contrast to the times when our parents lived, today an individual has multiple funding means for different type of requirements across age groups. An entire range of EMI-based products are offered by financial institutions at a reasonable interest rate for consumption. From disposable perspective too, low inflation and a growing economy have meant better job opportunities, higher income and a better ability to save. Even though times have changed the relevance of lending money to friends, relatives or familiar individuals still persists in India, but in a much evolved organised form which is called Peer-To-Peer (P2P) lending. Such is the popularity of P2P lending in India that RBI recognizing the importance has released a consulting paper recently and has initiated the process of regularizing the P2P lending under NBFC category.

What Makes P2P Lending Different From Other Investment?
Peer-to-Peer lending facilitates individuals having extra money towards lending directly to the needy borrowers, or participate in pooling loans for a fixed duration of time at a mutually agreed terms & condition. It provides a win-win situation for both lenders and borrowers due to absence of intermediaries with no processing cost. So let�s understand what makes P2P lending popular in India, despite multiple funding and investment options available to individuals in today�s time.

Lenders Dilemma: With base interest rate revised downward, safe investment options for individual investors have been declining over the period of time. Recently, RBI further curtailed Repo Rate by 0.25 percent to 6.25 percent, the lowest repo rate in the last six years. As a result, the 10-years 6.97 benchmark 2026 bond is trading almost 10-30 basis points lower from the time it was issued and is expected to decline further in the near future. Interest rates scenario in other savings instrument is not different; the savings deposit has remained constant at four percent from 2015-16 and Interest on Small Saving Schemes (Time Deposits, Recurring Deposits, Senior Citizen Savings scheme, Monthly Income Scheme, National Saving Certificate, Public Provident Fund, Kisan Vikas patra) for the third quarter of financial year 2016-17 has also been curtailed by 0.1 percent in its latest notification issued by Government. The current rates in the small savings scheme have declined by 1.2-1.8 percent compared to interest rate prevailing in FY 2015-16.