By Rahul Chopadekar
P2P lending platforms governed by RBI (Reserve Bank of India) master guidelines
An ideal time for venturing into innovative assets
There’s always room for improvement! If you think your portfolio is already well – balanced, good for you! But that shouldn’t stop you from looking for new asset classes. There is an advantage to routinely looking at all the available options and seeing how they fit your portfolio because, over time, different asset classes produce different results. For maintaining your ideal risk profile, an investment portfolio needs periodic calibration or rebalancing.
The inception of Peer to Peer (P2P) lending platforms came when there was increased financial uncertainty in the global market. The goal was quite simple, and only those who had the foresight regarding the country’s economy in the long term appreciated the option of technology backed innovative assets like P2P lendings. With automation on the agenda of every sector, P2P lending ensured that finance wasn’t going to be left behind.
Why may it be the right time to invest through the P2P Lending Platform?
The majority of investment instruments are cyclical, whereas fixed income instruments are always on a linear path and give a steady return over a while. P2P lending is one of those direct instruments. If you look at last one-and-a-half-year returns across certain asset classes – stocks, MF, gold, or real estate – you will see they have given returns between 5% and 12%. If P2P is offering 15-20%, it can be considered a good option compared to others.
Peer-to-peer lending involves lending to businesses or individuals through an online platform alongside other private investors. There are risks like the risk of default, delayed repayments, and depends upon the ability, experience, and capability of the platform and its management or team. One should do his homework to find a good quality P2P lending platform. It is by the side of capable finance professionals under the supervision of experienced bankers / senior finance management and Board of directors, platforms who are having their well defined and time tested credit policies and algorithms to select the right quality borrowers where the investor can expect higher risk-adjusted returns. One such name is www.omlp2p.com, Investment returns for such good quality P2Plending platforms have been attractive – ranging anywhere between 15-20% annually (post delinquencies).
P2P lending platforms governed by RBI (Reserve Bank of India) master guidelines. Before investment, one should confirm whether the platform registered with RBI and they are RBI guidelines compliant. Names like www.omlp2p.com may be trusted. (click at the hyperlink to see more).
The process of investment is comparatively simple, with no middlemen. You can register online using your desktop and start investing within a few minutes. You then create your portfolio by shortlisting options from a list of borrowers. The investment decisions are data backed, which are provided by the platform & the collections as well as payments are taken care of by the P2P lending company.
To summarize, Peer-to-Peer (P2P) lending has potential proven value propositions offered over the last decade, which are now fascinating Indian masses. It can create an immense return for the lenders (investors), especially when the Interest rate scenario (banking interest on Fixed deposit) is continuously falling and comes to less than 5%.
www.omlp2p.com is one of the RBI’s registered NBFC-P2P. It provides a technology-enabled e-commerce platform to its Lenders and Borrowers to avail their loan at a highly competitive Rate of Interest, in a hassle-free manner without much of documents; at the same time, it provides its Lenders Higher return on their capital by providing opportunities to lend to sound quality, well-assessed borrowers.
The author, Mr. Rahul Chopadekar, is a team member of www.omlp2p.com. The article written by him is in his capacity and educational in nature. All the views are his personal views were shared with Prittle Prattle News personally.
