P2P Lending Platforms like 12% Club, Mobikwik Xtra, FairCent, and LenDenClub are new and popular ways of earning high-interest rates with minimum risks. P2P lending is becoming a unique yet prevalent investment method created by the FinTech Era of India.
Best P2P Lending Platforms
By investing money into such PTP lending platforms, you can earn more than a 10% interest rate, with no lock-in period, minimum investment (usually Rs. 1000), and no lock-in periods. It sounds too good to be true, and people fear there might be some significant catch. I have tried all of the best P2P lending platforms as an investor. I will share my experience and advise you on making safe and successful investments.
1) 12% Club
12% Club is best overall for P2P platform for investing
The Fintech Company BharatPe backs 12% Club. As the name suggests, it gives investors a flat 12% interest rate on all investments. You can invest as low as 1000 rupees whenever you want. Investments take 3-5 days to start earning interest rates. Before investing, you must apply to become an investor; they will verify your details and provide you access within 2-3 days. You can withdraw your interest and principal amount with no charges. However, the withdrawal takes about 2 days
In my experience of 12% C,lub was the ending platform. With zero complications and a very easy-to-understand setup, it is ideal for people trying P2P lending for the first time. They have no account opening charges, either. All you need is ID verifications and providing contact details.
| Pros | Cons |
| The interest rate is credited every day. | At the time of writing, investments are paused temporarily. So you are not allowed to deposit money. |
| Strong backing of BharatPe, LenDenClub, and Liquiloans | |
| There are no charges/commissions on investments or withdrawals. |
Link: https://twelve.club/#/
2) LenDenClub
LenDenClub is best for portfolio diversification
LenDenClub is one of the oldest names in terms of best P2P Lending platforms in India. LenDenClub boasts a robust algorithm that performs fractional investments, ensuring minimum risks for you. What is fractional investment? Well, conventionally, if you lend money to someone and become a default ter, you lose a lot of your money. But, with fractional investment, your money is divided among 100s of borrowers. So, even if a borrower becomes a defaulter, you lose some of your investment.
LenDenClub has average returns of 11.95% per annum, showing they also have meager default rates, up to 1 interest rate with no slabs. The account opening process is designed to be simple. It is an ideal P2P lending platform in India to earn money.
| Pros | Cons |
| No account opening or transaction chargesThe minimum | m investment needed is Rs. 10,000 |
| Tools to plan for your future goals and create investment strategy accordingly. | |
| Highly responsive customer support for addressing all your grievances. |
Link: https://www.lendenclub.com/
3) Mobikwik Xtra
Mobikwik Xtra is best for high interest rate investments
With the widespread adoption of UPI, people are more comfortable making UPI transactions than ever before. Mobikwik takes the same advantage to offer its P2P Lending Services linked within the Mobikwik mobile app. This is the most straightforward and hassle-free experience I have ever experienced.
Average investments have no lock-in and can be withdrawn at any time. However, it also provides fixed tenure investments, with a lock-in period of 3 months, six months, etc. This fixed tenure investment generates an additional 1%, giving you possible profits of up to 1up, thus putting it on the list of the best P2P Lending Platforms in 2023.
| Pros | ConsIt is a relatively |
| basic and easy-to-get-started service. | Work majorly on phone apps, with poor experience in other platforms. |
| Allows you to add funds directly through UPI | |
| Provides fixed tenure investments with interest of 13% |
Link: https://www.mobikwik.com/xtra
4) Cred Mint
Cred Mint is best for hassle-free investments
Cred Mint is a part of the popular payments app called Cred. Cred Mint is a P2P lending platform that collaboratesLiquiloans to get you a 9% interest rate on your investments. It is ideal for large-scale investments. While other platforms cap out at a maximum of 10 lakhs, it allows for more significant investments.
Cred Mint is an ideal P2P Lending Platform for beginners as the interest rate gets credited daily, and you can track your asset performance in real-time with intuitive graphs and straightforward UI for easy understanding.
| Pros | Cons |
| Allows you to perform large-scale investments. | The maximum interest rate is 9% |
| Meticulous research and background checks are done to ensure loans are distributed to only safe borrowers. | |
| It helps you manage your money and perform better financial planning. |
Link: https://cred.club/mint
5) Finzy
Finzy is best for having complete control over investments
Unlike other platforms, Finzy allows you to make investments on your te. You can decide the investment period, amount, and risk you want. Finzy is one of the oldest and most powerful platforms for making investments.
Finzy allows you to achieve your objectives and investment goals with complete clarity. You can choose from an array of safe investment and risk options based on your preferences. The full control provided by Finzy is unmatched by any other platform/service.
| Pros | Cons |
| Credits your interest rate in the form of EMI every month. | It can be confusing/complicated for beginners. |
| Structured processes for loan recovery to keep you protected. | |
| Robust reports and dashboard to provide analytics, |
Link: https://finzy.com/
6) Faircent
Faircent is best for scalable investments
Faircent is a straightforward P2P Lending platform that allows you to lend money at defined conditions. You can decide the lending amount, and an interest rate would be agreed upon accordingly. The interest rates often go as high as 20% for some investments. You can optimize your assets for maximum return, ma, safety, or other middle ground you like.
| Pros | Cons |
| Allows you to make significant investments of up to Rs. 50 lakhs | It has a lot of transaction fees, joining fees, etc. |
| Intense screening and evaluation are conducted for all lenders and borrowers. | |
| Open for SMEs and various other business investments |
Link: https://www.faircent.in/
7) i2i Funding
i2i Funding is best for making large profits
i2i Funding is one of the best P2P Platforms for investing money with scope for large profits. It promises maximum monthly interest rates of up to 30%. It’s a straightforward signup process and a preexisting pool of buyers. Unlike other platforms, you can view potential borrowers and decide whom you want your money. The details of the lender and borrower remain confidential.
| Pros | Cons |
| High interest rates of over 30% are possible. | Complicated for the majority of people |
| Free recovery service helps minimize losses in case of any loan defaults. | |
| Before you provide money to any borrower, you know the lock-in period, interest rate, credit score, etc., before you give money to any borrower. |
Link: https://www.i2ifunding.com/
Honorable Mention
IndiaP2P is another leading P2P platform in the country specializing in direct investment into retail loans without any middleman. The investments are spread across diversified loans to reduce risk without compromising returns. Besides, all transactions are made via RBI-mandated bank escrows, which ensures secure transactions. Further, the investments are not subjected to volatility due to the non-market-linked nature of the financial instrument. The platform has a unique proposition in that it caters to women borrowers who are generally better borrowers than males. Secondly, it disburses loans through physical branches.
The monthly income plan offers up to a 16% interest rate per annum. Besides, the growth plan offers up to 18% returns per annum. Moreover, the monthly interest and principal repayments are reinvested to earn compounding returns. Further, IndiaP2P avoids listing extremely high-risk borrowers despite their willingness to pay higher interest rates.
Link: https://www.indiap2p.com/
The Verdict
P2P lending is a great way to earn in India. With new upcoming platforms, you can earn money while sitting at home by writing poems online or writing blogs in India.
We’ve shown you some of the best P2P Lending Platforms. They are equally significant and can offer you the experience you are looking for. We’ll help you shortlist with our final verdict.
| Feature | Best P2P Lending Platform |
| Best P2P Lending Platform Overall | 12% Club |
| Best for high interest rates | Mobikwik Xtra |
| Best for easy and hassle-free investing | Cred Mint |