Millennials Dominate P2P Platform as a Study of Lenders and Borrowers

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The P2P platform, which offers loans ranging from Rs. 5,000 to 10 lakhs, analyzed the annual data of more than 4 lakhs of users, to study the main trends in the industry.

Millennials dominate as the most influential cohort of borrowers and lenders on peer-to-peer (P2P) lending platforms, according to the study. LenDenClub, the country’s largest P2P lending platform, today released its 2020-21 report on the main borrowing and lending behaviors of its consumers (borrowers and lenders).

According to the LenDenClub report, tech-savvy Indian youth are way ahead of previous generations when it comes to borrowing or even using the platform for a new asset class as an investor. . According to the report published by LenDenClub, millennials in the 21-30 age group were the most active both as borrowers (56%) and lenders (54%) on its platform. Next come the cohort belonging to the 31-40 age group, representing 37% in the case of borrowers and 33% in the case of lenders.

India’s silicon city, Bengaluru, tops the rankings in terms of those with the highest demand for credit. Interestingly, the largest number of lenders also came from the tech city of Bengaluru. Mumbai, Hyderabad, Pune and Chennai are other major lending and borrowing markets, showing a clear dominance of the west and the south.

He further said that medical emergencies accounted for 35% of digital loans used during the year. As two consecutive waves of the Covid-19 pandemic have wreaked havoc on India’s healthcare system, there has been a huge surge in medical emergencies reported over the year. LenDenClub witnessed a huge demand for credit for medical emergencies on its platform, which was also the main reason for borrowing. Next come “salary advances†representing 33% and “family functions†representing 10%.

Salaried professionals ranging from CXO to mid-level management, led the investor rankings on the platform. The report further stated that 1.81 lakh INR was the average amount of investment on the platform, while 50,000 INR at 1 lakh was the most preferred amount among lenders, accounting for around 50% of the pie in terms of value. Due to the festival season, November (2020) and December (2020) and February (2021) were the first three months with the highest demand for credit. While in April-June 2020, the demand for credit was the weakest.

In terms of loan repayment – ECS payment was the most preferred mode accounting for 83% followed by UPI (10%) and NEFT (7%). In addition, the data also revealed that men continued to dominate the platform with over 80% participation.

Bhavin Patel, Co-Founder and CEO of LenDenClub, said: “Covid-19 has accelerated digital penetration and adoption across all industries, and the lending industry has also experienced a transformation beyond imagination. During the global health crisis, medical emergencies continued to be the number one reason for borrowing, and we are honored to help those who lack credit or find themselves outside the fold of financial inclusion, respond to their needs. Interestingly, millennials have also actively participated as investors using P2P lending as an ambitious asset class offering lucrative returns. Thanks to e-commerce and the penetration of new age technology that has built a whole new segment of Indians with the technology in Level II and Level III cities, from where we have seen new surges of request.

LenDenClub, the P2P platform that offers loans ranging from Rs. 5,000 to 10 lakhs, analyzed the annual data of more than 4 lakhs of users, to study the main trends in the industry. P2P is a fast growing and upcoming industry for alternative investment avenues. P2P NBFC is an RBI recognized lending platform that has started to develop in India in recent years. The report contains several data points and key information showing the typical demographic and professional profile of consumers.

LenDenClub is the largest peer-to-peer platform in India, having disbursed over 500 crore in loans. With a 100% funding record for its borrowers, LenDenClub currently enjoys a user base of 1.5 million users across India and disburses an average of 2.5 lakh in loans per year. LenDenClub, with the use of technology, disburses 82% of loans within 5 hours to its borrowers.


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