5paisa.com, India’s only listed fintech firm, has now officially joined the peer-to-peer (P2P) lending space following the launch of its peer-to-peer lending platform. With the said product, users will be able to issue loans from INR 500-Rs 50 lakhs to several different borrowers and earn interest as high as 36 percent per annum.
The platform, called 5paisa Loans, is now a registered Non-Banking Financial Company (NBFC) with the Reserve Bank of India. In a report from Economic Times, the platform seeks to deliver “short-term cash requirements of borrowers from all walks of life, while giving an opportunity to lenders to earn on their idle money.”
“We are glad to launch 5paisa Loans at a time when borrowers like small businessmen, individuals don’t have many avenues to borrow and many lenders have no opportunity to lend. 5paisa Loans is a platform, where we are bringing the old ways of lending and borrowing in latest avatar,” Prakarsh Gagdani, CEO of 5paisa.com commented.
“We expect our platform will, in a small way, help consenting borrowers and lenders to fulfil each other’s needs during the unfortunate Covid-19 outbreak.”
As part of its features, 5paisa Loans will be screening every borrower applicant with over 100 variable data points, such as age, location, earnings, previous data history, and more. Later, the combined credit score on each borrower will be presented to lenders.
As a result, rather than merely lending to a borrower, 5paisa Loans enables lenders to issue loans to a portfolio of borrowers, which, according to the firm, helps reduce risks and diversify investments.
The company also claimed that lending on the platform will be “completely paperless, diversified, less risky, transparent, and digital.”
The launch marks the entrance of 5paisa.com, India’s only diversified online platform for financial products, into the lending space.