This startup facilitates quick and safe P2P lending

There are times when one is low on funds and requires to borrow. In the traditional method, small businesses and individual usually apply for a loan in banks. Moreover, banks levy a certain amount of interest if the party qualifies for the loan. On the contrary, the peer-to-peer (P2P), also called as social lending or crowd-lending, is a method of debt financing in which any individual can lend or borrow finances without the aid of an official financial institution or banks. In other words, this method removes the role of the middleman involved and is a direct process of borrowing and lending. But how secure is this method?

Started in 2015, this RBI licensed NBFC - peer-to-peer lending startup, Lendbox, provides a favourable environment for borrowers and lenders.

The main objective of this startup started by Ekmeet Singh, Bhuvan Rustagi and Jatin Malwal, removes  mediators like banks, depository institutions etc. This in turn lowers the amount of interest rates for the borrowers and also, expands the yield of the investor's funds. Further, Lendbox functions as the mediating platform between the borrower and the investor, with complete transparency and security. 

Lendbox has a pool of borrower's profile from which the interested investors can choose and make an investment. The profile helps them determine the risks factors and also the scope of fund growth. In peer-to-peer investments, the investor tends to get a higher return on the invested capital. 

The startup also bridges the gap between borrowers and  investors. Usually, banks do a background check of your CIBIL score, credit history etc before sanctioning a loan. If your credit score is not up to the mark, you might not qualify for a loan. With Lendbox, however, heavily relies on big data analytics and advance assessment mechanic to ensure that every borrower get a chance to avail a loan and is not rejected unfairly. 

Till now, Lendbox has served over 1,99,948 registered borrowers and 17,555 registered investors. The firm has  24.47% of average returns and has till now disbursed 400 million.