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Financial crisis can hit any of us anytime even when we have planned it all. Need for immediate cash inflow can arise because of medical emergencies, unforeseen education expense, house construction expansion and marriage proceedings. While banks are the most secured lenders, they are not the most convenient ones.
If you are a borrower in need of a loan, there are online money lending options available for you that allow you to secure loans without huge paperwork. Most of the online lenders don’t ask for collateral which is again a benefit.
On the other side, if you are an investor who wants to get more rate of interest than conventional investments, the very same online money lending options offer you a solution. As we already discussed, money lending scenario in India has seen a dramatic shift with Non-Banking Finance Companies (NBFCs) rapidly gaining share in the market over banks. Now you can avail loans almost immediately via Peer to Peer more commonly known as P2P platforms.
NBFCs conventionally operated in a limited loan marketing segment where they were limited to financing automobiles, appliances, electronic gadgets and similar low financial risky instruments, but the explosion in the use of the internet and favourable regulations from Reserve Bank of India has allowed the NBFCs to explore further into the money lending market.
The result is the availability of some high-efficient and secured P2P online lending platforms and instant loan providers.
What are Peer-to-Peer lending platforms?
In most simple words, a P2P lending platform brings lenders and borrowers together without any bank acting as a third-party escrow. The lower costs involved and absence of any intermediaries make P2P lending an attractive investment as well as borrowing opportunity. For a lender the interest rates are higher than FD, Bank deposits, etc. and for a borrowers the rates might be lower than bank rates or can avail loans where banks have not approved.
Even though you will be charged a nominal fee by these lending platforms, but the service they offer is worth the fee. However, remember that none of these platforms is suitable for long-term high amount of loans like home and gold loans. If you are looking for such loans, we recommend our home loan and gold loan guide.
Here are the top 5 Peer-to-Peer lending platforms that we recommend:
A Bengaluru-based fintech startup, CashKumar is the brainchild of Dhiren Makhija, Yogesh Joshi and Kannan Kandappan that started operation in 2012 and since then has raised INR 5 crores in seed funding from various investors.
One can avail loans ranging from Rs.20,000 to 1 lakh on CashKumar at low-interest EMIs which makes it an affordable lending platform for borrowers. For investors, it guarantees lucrative returns on investment by essentially removing any intermediaries. To provide security for investors, this platform uses various data points to ensure the creditworthiness of the borrower is risk-free.
Another leading P2P platform, Lendbox is an RBI certifies NBFC-P2P company operating from the national capital. With over 2,00,000 registered borrowers and around 20,000 verified investors, Lendbox is stirring the personal loan market in India.
For an investor looking forward to multiplying their saving, Lendbox offers up to 24% rate of interest which is way more than conventional banking solutions.
Working solely on data analysis, the Ahmedabad based fintech startup, Lendingkart connects lenders with borrowers with risk-free creditworthiness. The main objective of this P2P lending platform is to facilitate easy loans for SMEs and individuals.
In 2018, Lendingkart secured Rs.300 crores from Aditya Birla Sun Life AMC in debt funding.
A Noida-based fintech startup, i2iFunding was started in 2015 by Neha Aggarwal, Abhinav Johary, Manisha Bansal, Vaibhav Pandey and Raghavendra Pratap Singh. This P2P platform aims at providing loans to the borrowers at attractive rates while earning high ROI for lenders.
In May 2018, i2iFunding raised INR 5 crores from SucSEED Venture Partners in seed funding
RupeeCircle is a fintech startup from Mumbai that utilizes cutting-edge technology to offer cheaper interest rates on loans for borrowers. It is giving banks a run for their loan market by offering lucrative lending options. For investors, the possibility to earn more on their investments is possible as RupeeCircle entirely eliminates any intermediaries.
Started by Ajit Kumar, Piyush Saurabh, Abhishek Gandhi and Ashish Mehta in January 2018, RupeeCircle raised INR 4 crores from Mahindra Finance in seed funding in July 2018.
Instant Personal Loan Proving Platforms
If the cash crunch is severe for you, and P2P lending platforms somehow do not fit your requirements, you still can get your financial needs met with the instant money leading platforms. These apps literally can disburse loan into your account within hours, provided you qualify based on their credit reports.
Here are the top 5 instant personal loan providers:
One of the fastest growing instant loan apps in India is the Bengaluru-based, MoneyTap started by three techies Bala, Parthasarathy, Kunal Varma and Anuj Kacker in 2015. For borrowers, this app offers the availability of loans up to Rs. 5 lakh without any need of collateral or guarantors. You can avail hassle-free instant personal loans that can be repaid in flexible EMIs ranging from 2 to 36 months.
In a progressive step, the MoneyTap raised $12.3 million from Prime Venture Partners and Sequoia Capital India in series A round of funding.
Previously known as Deal4Loans, WishFin is growing at a very rapid rate to become one of the biggest instant loan providers in India. Borrowers can avail any amount of loan depending on their creditworthiness from WishFin.
According to founder PuruVashishtha, “Our wish to elevate the act of seeking finance as a one-off transaction to a behaviour-changing habit of fulfilling wishes with the help of technology has been the key motivation behind our rebranding from Deal4Loans to Wishfin.”
A Mumbai-based fintech startup CASHe which started operations in 2016 is unique in the sense it uses a social media based proprietary algorithm called the Social Loan Quotient to establish the creditworthiness of young salaried borrowers. It facilitates instant credit disbursal anywhere between Rs.10,000 to Rs.2 lakh limited to a borrowing period of 15 to 180 days.
According to CASHe claims, it has disbursed loans amounting to Rs.450 crores till now to over 180,000 customers. In October 2017, this fintech startup raised $3.1 million from Northern Arc Capital in debt funding.
Another Delhi-based fintech company, IndiaLends is founded by the duo Mayank Kachhwaha and Gaurav Chopra in 2015. It offers products like instant personal loans, credit cards, unsecured loans and instalment loans.
Individuals can avail loan up to Rs.50 lakh depending on their credit profile. In July 2018, IndiaLends secured $10 million from London-based ACPI Investment Managers and Ganesh Ventures in series B funding.
The Chennai-based OptaCredit is an AI-powered lending platform that takes data from different sources to create the credit profile of young salaried professionals. Founding by Sriram Chanramouli and Kumar Srivatsan in 2016, this fintech company has raised $4 million from DMI finance in debt funding.
It is one of the best instant loan apps for salaried professionals.
As predicted by the Boston Consulting Group, Indian digital lending industry is about to touch $1 trillion marks in the next five years, it is apparent that borrowers will have more loan options available for them.
P2P lending platforms and instant loan apps are two such online money lending options that one can use to meet financial needs immediately.