I have worked in lending for 1 year. All P2P lending platforms are just modern version of Laxmi Chit Fund.
1 saal mei hi generalization, koi fuddu startup fintech nbfc mei Kaam kiye kya
Boss, p2p's are designed to get low quality borrowers. Sure some are worse than others, but doubt any are sustainable at the level their "marketing material" claims.
And anyway, it's a bad instrument for investments. Limited upside with 100% downside characteristics.
It is much better (and safer) to invest it in a small finance bank instead. They come under the ambit of RBI and your deposits are insured (to the tune of 5L I believe). They even offer FD rates of 8.xx %. I believe mint offers 9.xx right? Don’t think the ~1% extra is worth the peace of mind for 5L of hard earned money
Some Small Finance Banks claim to give 9% rate too. But I have not been able to invest with them. I think physically going to their branch is only way to open FD account.
You might have to visit their branch to open an account. But nowadays it’s barely a 15 min job. Opening deposits is all online (at least Equitas). Enquire with your preferred SFB , the service levels are usually much better than conventional banks.
I have added more than 5 lakhs, and I haven't faced any issues so far. Last year I had withdrawn a sum and they took barely a day for the same. The interest is credited on a daily basis. The backend is LiquiLoans who is also behind Fi Jump.
When it looks too good to be true, it really is :)
Considering FDs at 7%, is 9% really that attractive?
₹5L @ 7% for 5 years yields ~₹7.1L at maturity
₹5L @ 9% for 5 years yields ~₹7.8L at maturity.
₹70k over 5 years is the price you pay for assurance of a big bank, lesser chances of failure, regulation and no abrupt change of policies!
Calculations might be a bit off, but all this risk for 2% probably won’t be worth it. You can foreclose FD also with some penalty on the interest earned, principal is still safe.