Comparison of P2P lending Platform in India

I have been actively following the P2P market in India.Having tried some of the platform with my own money I was able to short list some of the most consistent players.One big factor I consider while investing is ,how open the platform is in sharing its loan performance data .I have compiled the loan performance of my top 3 platforms.

I have caluclated the expected payoff as the determining factor to invest in a category of loan.

Expected Payoff = Average return* Probability of non default- Principal * probability of Default

basically it tells you how much you will make in the long run for a given default rate in a category:

 

I2I Performance:

As it is evident Category  D and E have performed best with average  expected payoff of 17.5%

 

Faircent:

Faircent highest performance has been in the medium risk category.The result across categories show less variation compared to I2I

LendenClub

Lenden Club has been a winner with great returns in the High and Unidentified Risk.Unidentified risk are generally 2 months loan given to salaried people

Some other factors need to be considered  during  investing apart from just returns:

  • Tenor of Loan
  • Type of borrower:Purpose,details of documents submitted,cibil report,gender
  • Amount of investing in one loan

 

 

P2P portfolio 6 Months performance

I  have been reviewing multiple P2P platform and been investing in 3 platform:

  • I2I
  • Faircent
  • Lenden Club.

6 months Performance of my portfolio:

I2I

As it is evident  I have made around 20% return pretax which is not bad.

Defaults up till now = 0

EMI in delay = 1000

I2i lending I use to lend to mostly people working in government firms who I feel have stable job and low correlation with economic changes in the world.

Ticket size:5000

I always use 5000 Rs to stay diversified across multiple borrowers

LENDEN CLUB:

 

My Lenden portfolio has given me higher return compared to other platform.One reason is I use this platform to give 2 months high interest loans.The risk is higher but minimum ticket size is small(500) which helps me to diversify. Secondly due to short term loan churn is very high and if I see economy going bad or higher delinquency I have control over the book.

All investment are given to salaried people.

Faircent

Return from Faircent is in between I2I and Lenden. Majority of borrower are in business segment. In future I will like restrict my exposure to business group and will diversify to other platforms.

 

Another P2P platform I tried was Lendbox. Minimum investment is 10000 which is high because RBi restrict total investment to 10 Lakh which means I can do max 100 investments which is low.

I am in the process of trying Monexo and will update with the performance!