Review of Finance Peer P2P Platform

Finance Peer is a new addition to the P2P lending Platform which have received NBFC-P2P license.

Background: FinancePeer  was setup in 2017 and is registered as NBFC-P2P company. The promoters and board of directors have a technical background and their intention is to create a lending system based on using machine learning to underwrite the loans

Details of the promoters :

Financepeer has already raised a funding of $500,000.The office is in Lower Parel mumbai

Types of Loans: The highlight of this platform is that it caters to 2 Kinds of loan:

  • Salary Loan
  • Education Loan

They have tieup with educational institute where they provide education loan which is paid by the parents. As risk of not repaying the loan can affect the education of the child thus default rate is very low.

Minumum Ticket size is 5000 as of now.

Average ROI :

Almost all the loans on the platform are at 20% ROI and tenure is less than 12 months. Ideal for people who looking for short term investment in low risk loans. They display their own score based on the AI algorithm.

Fees:The good part is that they do not charge Lender any fees which is a bonus as most P2P platform charge between 1-4% thus reducing the actual earning.

NPA : I have details of the historical performance of the platform.The numbers look promising but I can comment on my performance only after 5-6 Months . Educational Loans have historically low delinquency and can be a good addition to portfolio.

The current NPA is below 0.5% and is at the moment one of the best in industry but only with time we can predict how much of it will be maintained once the scale up.

Conclusion: Based on the various parameters I find it to be a good platform for people who are  already investing in other platforms and looking to add a new variety of short term loan to their portfolio.

Problems which they can work on

  • Reducing ticket size to 2000
  • Having an app which will make investment process easier

I will be covering monthly performance of this Platform along with others.

PS:Lender Referral Link for  free Registeration


(Use Code MNJ6547)



12% Return alternative for Corporate FD

Lot of people invest in Corporate FD to gain some extra return over bank FD’s.  We know there is an element of risk as this is a form of unsecured lending and in event of company default capital maybe at risk. There is an alternate solution for people who can make 12%-15% which is much better than the top corporate FD  in the market with reduced risk .

What is the Solution?

Invoice Discounting Investment!

what is Invoice discounting?

Invoice discounting is the practice of using company’s unpaid invoices to raise working capital & fulfil its financial needs. Traditionally, financial institutions including banks and NBFCs have been discounting invoices for MSMEs. Invoice discounting involves transfer of rights on an asset (invoice) from the seller (i.e. business) to the financier (i.e. investor) at an agreed value

The process is a simple method used by companies to generate working Capital. Let’s say company A provide some services to company B.

Company A : mid sized enterprise(SME)

Company B: Blue chip company.

Now B has to pay A money for the services. A raise invoice for the payment. B being a big company takes 2-3 months for the payment.

Now A does not want to wait for the money as it needs immediate cash which can be deployed in business. Here comes invoice discounting.

  1. The firm A borrows money from an investor keeping the invoice as collateral
  2. The investor does not pay the full face value of the invoices; instead it pays the firm a percentage, 80-90%
  3. As the investor now owns the unpaid invoices money , the money due from the end customers is credited to the investor
  4. When the end customers pay the invoices, all the money goes to the investor
  5. Thus investor had put in 90 bucks and got 100 end of 3 months which is the interest he earned.

The advantage over corporate FD is that this funding is backed by invoice as collateral and is thus a secured funding.

The companies which are going to pay are blue chip  thus unlikely to default.

Company A is legally liable to pay you even if company B does not honour the invoice.

All transaction take place in escrow account thus is reasonable safe.

How to to participate in Invoice Discounting?

In India Kredx is the most trusted invoice discounting platform. KredX is an online invoice discounting platform where business owners get an opportunity to raise funds for their working capital needs at attractive terms by selling their unpaid invoices raised on blue chip companies.

It is backed by Sequoia Capital has received more than  50 Cr Funding.

Points to Note:

  • KredX  minimum investment is 3Lakh , Time duration would be between  30 days to 90 days.Expected return would be 12-20% annualized.
  • KredX fees is 0.15% of investment amount.
  • Also, investors are made available the credit history of the SMEs and they know which Blue Chip company was the invoice raised for. KredX also does a verification of the invoice with the Blue Chip Company,gets a posted dated cheque from the SMEs in case of contingencies , operates an escrow account which helps the  investor get back the money in case the Blue Chip company does not pay


lets’s say company A wants to raise money against invoice of 100,000

SME discounting rate = 15%

You will invest around 96000 and get back 100,000 after 3 months

Kredx Fees = .15% / month = 450 in 3 months (approx)

So you make around 3500 in  months or around 14% annual returns.


Sample screenshot of dashboard:



  1. Shorter investment duration(good liquidity)
  2. secured Lending
  3. Better than corporate FD
  4. No defaults till date
  5. Low correlation with stock market


1. There is a small chance that Blue chip company defaults or SME becomes bankrupts within 3 months .Unlikely but possible

2. Minimum ticket is high at 3 lakhs


People who have capital surplus and have deployed lot of money in Corporate FD, Liquid Fund , Bonds etc can use this asset class to achieve decent return.More secured and higher liquidity compared to corporate FD and unsecured bonds

Not a good investment for people who have just started investment because of high minimum ticket size.

People who are interested and want to know details/register for free please contact me on mail on  or message me on 9967974993


P2P Portfolio Analysis (May,2019)

This month I  have added significant amount of capital to the platform which I had  less share uptill now . My goal is to have a more uniform allocation among different platform.

This month I will also do a deep dive of my existing NPA across platforms

Portfolio Composition

April Allocation


May Allocation:

Portfolio Changes:

  • Have added OMLP2P this month
  • Have increased capital in RupeeCircle and Cashkumar
  • Have stopped unidentified category in Lendenclub for few months .Will calculate the impact on ROI
  • Goal is to increase allocation in platforms other than I2I and lendenclub now to have a more uniform portfolio

 Portfolio Performance:

Performance Analysis:

LendenClub: The portfolio Return stands at 15.6% after factoring in all NPA. I consider zero recovery in case of NPA.

I have tried to break down my NPA into 2 parts. “Unidentified Risk” vs Others.

“Unidentified Risk ” loan have been in my portfolio for almost half the time since I started investing.

Interestingly Half of my Interest has been earned from “unidentified ” and other half from rest of the portfolio.

Of the 9.8% NPA almost 7.5%  can attributed to ” unidentified”. Though “unidentified” has generated  higher return ( same interest in less time) the NPA are quite high . If I would have avoided “unidentified ” my interest might have been lower but net returns would have definitely be above 17%!

In other words the high ROI of 48% is getting offset by high NPA.

Problem with investing in non unidentified category is that auto invest hardly works and I have to check for loans every  morning at 10.30 am to invest. Thus investing a high amount is a challenge


In I2IFunding ,only 3 borrowers out of 93 are in delay of more than 75 Days. Other loans either got some form of repayment thus I do not consider as delinquent.

Even though only 3 loans are in delay due to higher ticket size in I2I total NPA is 4% plus. One loan itself is causing 2% of NPA.

One mistake I had done in I2I was to give loan to a person who made 10 enquiries in other institute ,the loan is one of the delinquent ones now. It was a sign  that the individual had tendency to over leverage and  I should had to refrained from investing!

Collection process of I2I is superior compared to lendenClub.


RupeeCircle has been the only platform where I have not suffered any NPA till now. Now I have been investing for more than 8 months and having no delinquency is  an achievement after investing in  27 Loans


In Cashkumar I have one delinquency. After evaluating the borrower I can see his average monthly balance was 1000 for last 3 months. It is a definite red flag. People who have low average balance will always struggle to pay EMI. Now I always ensure that average balance of individual is well above the future EMI.

Overall repayment has been ok with few delays but no major issues.


I have recently started investing here thus no NPA till now. I like the variety of borrowers available.High Salaried and established business owners. This platform has helped me diversify some of the money when borrowers were not available in I2I and rupeecircle.

They have lowered minimum ticket to 2000 which is a big positive!



I2I Referral Link

I2I Account Referral Link

(First Use the link to register then add the Code I2I50%DISCOUNT while paying to get 50% off)

Rupee Circle Referral Code- PIND145
Rupee Circle

LendenClub Referral Code – LDC11989

OMLP2P Referral Link


Mail me to get Cashkumar Referral