BharatPe has expanded its services to include peer-to-peer lending by launching a new app called the "12% Club."

12 club Bharatpe, a merchant payments and financial services provider, is expanding its consumer offering with the launch of its product.Individual investors can use the "12% Club" app to invest and borrow money at 12% interest. BharatPe has partnered with LenDenClub for its consumer offering and is now enrolling Liquiloans. In 2019, the fintech company launched P2P lending for its merchants with the same partners.

To keep delinquencies to a minimum, BharatPe's platform would allow 12 percent club p2p investors to lend to its merchants.

As these merchants will be using BharatPe's payment system, it will be easier for the corporation to underwrite these loans. The 12% Club will be funded primarily by an established non-banking financing firm (NBFC), such as Hindon Mercantile, which will issue consumer loans. Grover expects the average loan term on the site to be between three and twelve months. Individual investors have now contributed $5 million to 12 percent club app through loan payments totaling $1 million.

According to the developer, the majority of the growth has come from referrals, but the app now receives close to 2500 daily downloads. Employees of BharatPe p2p lending have had access to peer-to-peer lending since earlier this year. BharatPe recently joined India's coveted unicorn club after receiving $370 million in a primary and secondary mix as part of a Series E investment round led by new investor Tiger Global Management in New York.

Peer-to-peer lending

P2P lending is not a novel idea. In 2017, the Reserve Bank of India expanded its regulatory sphere to include this service.
There were more than 21 lending institutions operating at the time, but the RBI's regulations ensured that only dependable businesses with sound business plans survived.
Users with spare funds lend to potential borrowers chosen by the service provider via peer-to-peer lending via 12 club Bharatpe.
Following that, the borrowers make regular payments to the lenders, either in one lump sum or in equal monthly installments.
Following the release of the RBI's regulations in 2017, several established companies in the market saw an increase in fundraising.

How risky are they?

One of the most significant risks associated with this type of lending is loan default. Because Bharat P2P lending is an unsecured loan, the borrower does not guarantee repayment in the event of a default.

The loan's high return on investment in comparison to other debt products could be attributed to the fact that it is unsecured.

What exactly does "12 percent Club BharatPe" entail?

To invest their savings, users of the 12 percent Club app can choose to lend money at any time through P2P NBFC partners of BharatPe.
Additionally, customers can use the 12% Club to apply whenever they want for collateral-free loans up to Rs. 10 lakh over a three-month period.

For consumer loans, there won't be any processing or pre-payment fees, according to BharatPe 12 club p2p. When determining loan eligibility, the consumer's credit score, Payback loyalty programme purchase history, and payments made with the BharatPe QR will all be taken into account, along with other factors.
A full or partial withdrawal of an investor's funds may be requested at any time using the app.

Conclusion

Fintech companies like BharatPe P2P lending strive to create new services in order to retain captive audiences within the ecosystem and give them the opportunity to earn and borrow money at rates that are competitive with the market.