Hyderabad is leading the way in terms of credit demand, while Mumbai is the top city for lenders, according to a report released by LenDenClub, India’s leading Peer-to-Peer (P2P) lending platform. The report provides insights into the borrowing and lending behavior of consumers based on an analysis of annual data from the previous financial year.
The data reveals that Hyderabad has the highest credit demand, while Mumbai has the highest number of lenders. Other major lending and borrowing markets include Bangalore, Vadodara, and Pune, indicating a clear dominance in the west and south regions.
The report also highlights that working capital accounted for the highest number of digital loans availed during the year. This indicates growth in the Indian economy, as the quantum of these loans amounts to several thousands of crores. LenDenClub experienced a significant surge in credit requests for medical emergencies, which emerged as a prominent reason for borrowing. Other contributing factors include advance salary and home renovation. Notably, around 40% of borrowers have a monthly salary ranging from ₹10,000 to ₹20,000, with an average loan amount of ₹75,000.
In terms of lenders, the report reveals that salaried professionals ranging from CXOs to mid-managerial level individuals topped the chart. Furthermore, 48% of the invested amount was more than ₹10 lakhs. The report also highlighted the seasonality of credit demand, with the monsoon season from June to September 2022 being the period when credit demand was the highest, while February and March 2022 saw the lowest demand.
Bhavin Patel, Co-founder & CEO of LenDenClub, commented on the findings, stating that there has been an increased demand for working capital, indicating that small businesses are increasingly turning to digital loans for their financial requirements. He also noted that LenDenClub has successfully disbursed numerous loans through this product, which has proven to be a top-performing unsecured loan asset. Patel emphasized that by extending loans to small businesses, the platform actively contributes to the Finance Ministry and RBI’s efforts to facilitate lending to this crucial sector.
LenDenClub is India’s largest Peer-to-Peer (P2P) lending platform, having disbursed over ₹11,000 crores worth of loans. Its flagship product, FMPP, has provided returns of more than 10% p.a. to 100% of the investors within the past three months. The platform, powered by AI & ML technology, allows investors to start investing in P2P lending with a minimum investment of ₹10,000. LenDenClub boasts an active customer base of over 85 lakh users.
In conclusion, the LenDenClub report sheds light on the credit demand and lending trends in India. Hyderabad leads in terms of credit demand, while Mumbai dominates as the city with the highest number of lenders. The report highlights the significance of working capital loans, particularly for small businesses. LenDenClub’s contribution to facilitating lending to this sector aligns with the government’s efforts to support and boost the Indian economy. With its robust platform and impressive returns, LenDenClub continues to be a reliable option for investors looking to participate in P2P lending.
