LenDen Club launches Fixed Maturity Peer-to-Peer investment plan in Rajasthan with expected returns of 10 to 12% p.a.￼￼￼￼￼
Jaipur, August 10th 2022: India’s largest P2P Lending platform, LenDenClub, today introduced the ‘Fixed Maturity Peer-to-Peer Plan’ (FMPP) in Rajasthan. FMPP is a new-age, term-based P2P plan that enables investors with stabilised high returns of up to 10-12% p.a. for a minimum of ₹10,000 per investment. The company aims to double its current investor base in Rajasthan by the end of FY 23
LenDenClub, an RBI-approved NBFC-P2P that serves more than 20 lakh investors, has designed FMPP such that an investment amount is hyper-diversified into a vast pool of borrowers, owing to which the default rate is drastically minimised, thus offering investors risk-mitigated returns. The new AI and ML based algorithms are more potent than before because they have been fine-tuned and trained on proprietary first-party data acquired by the company since inception. This enables FMPP to offer hyper-diversification as a unique feature which mitigates risk and offers stability of returns
Before launching the product, LenDenClub analysed investors’ data in Rajasthan, drawing insights into their investment behaviour. In the first half of the calendar year 2022, it noticed a surge in investors by over 100%, while the investments have grown 4x, compared to the calendar year 2021. Average investment has increased by more than 10x, 4x and 4.5x for the age group 36-40, 31-35, 21-25 years respectively in the last six months from December 2021. The average amount invested by female investors is substantially higher than the male investor. Overall Female investors increased by around 3.5x in the last 6 months. Additionally, within Rajasthan, the pink city, Jaipur leads the race in terms of the total number of investors investing in Peer-to-Peer lending compared to Jodhpur, Jhunjhunu and Bhilwara, which are other important cities.
LenDenClub’s FMPP investment plan is a term-based investment plan with flexible tenures of 1, 2, 3, 4, or 5 years. The invested funds are reinvested several times throughout the tenure, thus giving the investors the power of compounding along with
an annualised expected yield of 12.21 to 15.25% p.a. over 5 years. It is a non-market-linked alternative investment asset class which makes it immune to the risks of capital erosion on account of market volatility and therefore offers investors enhanced returns along with an added layer of protection to their invested principal. Further, because of the product construct, it competes with other fixed income asset classes like FDs, Gold Bonds etc
On the launch of FMPP, Bhavin Patel, Co-founder & CEO of LenDenClub, said, “We have seen a stable growth in investors who are keen on investing in alternative investment options from the state of Rajasthan. FMPP is a pioneering, customer-first investment offering in this era of ‘alternative asset classes’. Technology is at the heart of everything we do. By introducing key technological features such as hyper-diversification, auto-investment, and reinvestment into our platform, we are eyeing to drive a pivotal shift in the way investments are planned and executed, especially by the younger and tech-savvy audiences of Rajasthan.”
“With the current investment landscape, beset with high inflation and market volatility, FMPP adds a new paradigm of stability and transparency, which has assumed precedence by far, among investors. Our single minded focus is to ensure that over 99% of our investors earn stabilised returns of 10-12%, based on our historical data.” he further added.
FMPP, is a fixed investment plan, wherein long-term lock-in facilitates the compounding to kick-in and thereby improves the yields over the due course. With a higher annualised yield coupled with the power of compounded interest of stabilised returns and marginalised NPA, one can potentially double their investments in FMPP in about 6 years’time. While the minimum investment is ₹10,000 per investment, the structure of the plan enables investors to open multiple FMPP accounts with the total portfolio value not exceeding ₹50 lakh which is in line as per guidelines set by RBI. Auto investment and portfolio optimisation offered through an enhanced app experience makes FMPP an indispensable investment option for smart investors.
With a stellar record of customer acquisition and loan disbursements, LenDenClub has been one of the fastest and most significant P2P lending companies in India. It has crossed a milestone of disbursing credit of ₹5,000 crore since its inception. It also recently raised $10 million in a Series A round co-led by a consortium of investors, including Tuscan Ventures, Ohm Stock Brokers, and Artha Venture Fund.