BharatPe forays into consumer lending with latest peer-to-peer feature
- This feature will allow users of the
BharatPe appto lend money to each other at an interest rate of up to 12% annually.
- The company aims to generate a capital pool of $100 million and lend up to $50 million from this product by March 2022.
- BharatPe has disbursed over $300 million in business loans to over 2 lakh merchant partners under its P2P offering.
The platform will allow users to invest their savings — within the range of ₹10,000 to ₹10,00,000 — in a
This amount will later be used to give out loans of up to ₹10,00,000 to customers at a 12% annual interest rate. The loan will be collateral-free for the first three months and the company will charge no processing or pre-payment charges on these loans.
AdvertisementThe consumers investing via the 12% Club app can put in a request to withdraw their investment anytime, partially or completely, without any withdrawal charges.
The loan eligibility will be defined based on several factors such as customer’s credit score, shopping history using multi-brand loyalty programme PAYBACK or payments done through
The company aims to achieve an investment asset under management/capital pool of $100 million and a lending of $50 million from this product by March 2022.
Suhail Sameer, chief executive officer (CEO) of BharatPe said, “In the pilot phase, we have seen great traction with $5 million of monthly investment run rate and $1 million of monthly borrowing run rate. We are confident that this product will be well received in the market and will play a key role in driving financial inclusion in the country. This is just the beginning and we will be adding new customer products during the rest of the financial year.”
Sameer further noted that their P2P lending product for merchants has witnessed a gross investment of close to $700 million by 6.3 lakh merchants. The company claims to have disbursed over $300 million in business loans to over 2 lakh merchant partners.
Earlier this month, Kunal Shah-led credit card payments app CRED enabled a peer-to-peer (P2P) lending feature called CRED Mint for its 7.5 million members. The feature will allow users of the CRED app to lend money to each other at an interest rate of up to 9% annually.
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