All about Bharatpe
12% Club A FinTech startup called BharatPe powers the investing and borrowing app BharatPe. One of the largest Fintech company in India is 12% club BharatPe. If you invest your money at 12%, you could earn up to 12% interest.
With the debut of its product, 12% Club BharatPe, a merchant payments and financial services provider, is expanding its consumer play and entering the peer-to-peer (P2P) lending industry.
Through the “12% Club” app, individual investors will be able to invest and borrow money at 12% interest thanks to BharatPe’s P2P service.
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12% Club BharatPe has collaborated with LenDenClub for the consumer offering and is currently onboarding Liquiloans. The fintech had introduced peer-to-peer lending for its merchants in 2019 with the same partners.
To ensure low delinquencies, P2P investors on the 12% Club BharatPe platform will be lending to its merchants.
Because these merchants use the 12% Club BharatPe payment system, the company said it will be able to assess these loans more accurately based on business cash flows and help in repaying this credit by even deducting a small sum from daily payouts.
A existing non finance company (NBFC), like Hindon Mercantile, will support the borrowing on “12% Club” by lending money to clients.
12% Club BharatPe had first launched
“We did a soft-launch for the product earlier this month and think of ‘12% Club’ as a good alternative to park extra liquidity, without taking the high risks of equity. Further, it allows investors to withdraw from the offering at any time. Since 12% Club BharatPe has millions of merchants, there is no concentration risk to lending to a small cohort,”
Grover predicts that the platform’s typical loan term will be between three and twelve months.12% Club BharatPe is already witnessing a monthly investment run rate of $5 million by individual investors, and loan disbursals worth $1 million.
The software is receiving close to 2500 daily downloads, according to the business, even though most of the growth has come through recommendations. 12% Club BharatPe had first launched its P2P lending offering to employees earlier this year.
The company claimed it will be able to assess these loans more precisely based on business cash flows and assist in repaying this credit by even deducting a little percentage from daily payouts because these merchants use the 12% Club BharatPe payment system.
Peer-to-peer fundraising
encourages donors to make personal donations on favor of a charity or non-profit organisation. It falls within the umbrella of crowdfunding. Peer-to-peer fundraising allows people to create many individual fundraising pages that they may each share with their own networks, as opposed to having one primary crowdfunding page where everyone donates.
12% Club BharatPe recently entered India’s coveted unicorn league at a valuation of $2.85 billion, after it raised $370 million in a primary and secondary mix, as a part of a Series E funding round led by new investor New York-based Tiger Global Management.
What is P2P lending?
- 12 club p2p lending is not a new feature.
- In 2017, the Reserve Bank of India had brought this service under its regulatory purview.
- Even at the time, there were more than 20 12 P2P lending players in the market but RBI’s regulations ensured only the serious ones with watertight business models remained in the sector.
- In 12 club p2p lending, users sitting on idle money provide loans to potential borrowers identified by the service provider.
- These 12 club p2p lenders then receive payments from the borrowers on a set basis — either one time, or in equated monthly instalments.
- After RBI issued its regulations in 2017, the space saw a spree of fundraising
- 12 club p2p Involving some of the existing players in the segment.
- Some of the major companies operating in this space include RupeeCircle, Finzy, IndiaMoneyMart, etc.
Peer-to-Peer (P2P) Lending History
Early on, the P2P lending system was viewed as a way for people who would be turned away by traditional lenders to gain access to credit or as a method of consolidating student loan debt at a lower interest rate.
However, P2P lending sites have widened their audience in recent years. The majority of them now focus on customers who wish to pay off credit card debt with a lower interest rate. P2P lending websites also offer auto loans and loans for house repairs.
Learn about peer-to-peer lending
P2P lending sites connect lenders and borrowers directly. Every website controls the prices, the terms, and the transaction. The majority of websites offer a wide range of interest rates dependent on the applicant’s creditworthiness.
An investor first creates an account on the website and deposits money that will be used to fund loans. The risk category that is allocated to the loan applicant’s financial profile influences the interest rate that application will be required to pay. The loan applicant may examine offers and choose one to accept.
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What are the risks?
- One of the biggest risks associated with this kind of lending is the non-repayment of loans.
- Given that 12 club p2p lending is a form of unsecured loan, there is no guarantee put up by the borrower for the lender to redeem in case of a default.
- However, the unsecured nature of the loan is also the reason behind the high return on investment.
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About BharatPe “12% Club”?
- “Consumers on the 12% Club app can invest their savings anytime by choosing to lend money through 12% Club BharatPe partner 12 club p2p
- Additionally, consumers can avail collateral-free loans of up to Rs. 10 lakh on the 12 % Club for a tenure of 3 months, as per their convenience,the statement said.
- There will be no processing charges or pre-payment charges on the consumer loans,
- A number of factors would be used to determine loan eligibility, it also added.
- Including consumer’s credit score, shopping history using Payback loyalty system or the payments done via12% Club BharatPe
- Consumers investing via the app can put in a request to withdraw their investment anytime, partially
- Or completely, without any withdrawal charges.
- They can start by investing Rs.1,000 and the upper limit for investment by an individual is currently set at Rs. 10 lakh.
- The company said this would be increased to Rs. 50 lakh over the next few months.
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How do I qualify to borrow money from the 12% Club?
On the basis of its credit policy, our lending partner, Hindon Mercantile Limited, conducts eligibility checks. To be qualified for loans, you must have a high credit score. There may be a variety of causes for rejection, though. One of the following possibilities:
– As per our financing partner, you might not be eligible.
– You might not have provided the necessary supporting documentation.
How to determine the interest on my loan?
Depending on your creditworthiness, interest on your borrowings is computed at 12% annually. Consider borrowing $1,000,000 through the 12% Club. The cost of interest will be 3% for three months at 12% interest per year. Every day, interest is added—33 per day. Your debt can be paid off at any time. There is no penalty for early payment.
Conclusion
The rolling out of 12 club P2P lending by 12% Club BharatPe marks fintechs trying to roll out newer features to keep captive audiences within the ecosystem, allowing them to earn and borrow at competitive market rates.
