India’s only publicly-listed fintech firm 5paisa has launched a peer-to-peer lending platform.
The firm, which is typically known for online share trading, is now enabling people to lend from Rs 500 (£5.41) to Rs 50 lakhs to multiple borrowers and earn annual interest of up to 36 per cent.
Lending on the platform – 5paisa Loans – is completely paperless, diversified, less risky, transparent and digital, the company said in a statement, cited in a report on the CNBC-TV18 website.
“We are glad to launch 5paisa Loans at a time when borrowers like small businessmen [or] individuals don’t have many avenues to borrow and many lenders have no opportunity to lend,” said chief executive Prakarsh Gagdani.
“We expect our platform will, in a small way, help consenting borrowers and lenders to fulfil each other’s needs during the unfortunate Covid-19 outbreak.”
5paisa Loans will screen every borrower applicant with more than 100 variable data points, including earnings and previous data history. Investors will then be given a combined credit score on each borrower.
Investors lend to a portfolio of borrowers, which 5paisa Loans says reduces their risk by diversifying their investment.