P2P Investment- Peer to Peer Lending India

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Tips to build better investment portfolio with
Peer to Peer Lending in India
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Peer to peer lending in India is relatively an
online investment trend which is at its nascent
stage. By adding Peer to Peer lending to your
investment portfolio, you can easily diversify
more, automate your investments and stay invested
for a longer term. If you follow few practices
while investing on P2P lending platforms you can
easily get higher returns with minimum risks.
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Here are some useful tips to build a better
portfolio from P2P lending

• 1. Diversify
• The mantra of dont put all eggs in one basket
  applies to lending money online as well.
• The Investment Amount-
• Do not offer loan to a single borrower, divide it
  among number of borrowers. No of borrowers depend
  upon the amount you wish to invest. Eg. if you
  wish to invest Rs.1,00,000 try to lend among
  25-40 different borrowers.
• Across risk categories
• Each borrower has a credit rating based on his
  past credit details. Some peer to peer lending
  platforms in India have their own credit rating
  score too like LenDenClub. While, most lenders
  would prefer low risk borrowers, it wouldnt be a
  riskier proposition to lend money to one or two
  borrowers with medium or high risk rating. So,
  depending on your risk-return expectation, you
  can diversify across risk categories.

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2. Automate Your Investment If you are an
individual or an institutional investor with
large investment amount to disburse, then you can
use automated investment. With LenDenClub,
instead of manually looking over each loan or
borrower profile, you can save time by applying
automated filters according to Risk categories,
tenure, purpose, CIBIL score etc.. It also makes
easier to manage the account with so many
borrowers.
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3. Stay Invested Most personal loan lenders make
the mistake of withdrawing the interest return or
principal repayment EMIs at regular intervals,
even monthly or quarterly in some cases. However,
it is advisable to stay invested for a longer
period and re-invest from the monthly cash flow
which will earn you compounding interest. By
doing some p2p lending segment research and
proper analysis of borrowers profile, you can
build a better investment portfolio on Peer to
Peer Lending platforms. You can start investing
in P2P lending now with LenDenClub.
www.lendenclub.com
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Thank You
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