Lendbox Review

This article gives an honest review of Lendbox, which is a P2P lending platform.

· 4 min read
Lendbox Review

In this Article:1. About Lendbox2. Why Lendbox?3. Business & Revenue Model of Lendbox4. Conclusion

P2P lending (Peer-to-Peer Lending) is an emerging financial instrument that enables an individual to lend or borrow money to or from other people without depending on the banking channels. This offers an alternative method to individuals for availing loan facilities through online lending platforms. These online platforms seek to link borrowers looking for unsecured personal loans with investors willing to lend for earning good returns. In India, these types of platforms are still not very popular due to a lack of awareness about them. One such platform which has gained some recognition in India is Lendbox, which facilitates P2P lending on its platform.

About Lendbox

Founded in 2015, by Ekmmeet Singh, Bhuvan Rustagi, and Jatin Malwal, Lendbox is a Peer-to-Peer lending platform in India. Lendbox obtained an NBFC-P2P license from RBI in the year 2018. Lendbox aims to modernize the debt investment industry of India. The primary objective of Lendbox is to fractionalize the existing debt investments and to make them more accessible and liquid with the help of smaller ticket sizes and the elimination of any third-party intermediaries. Lendbox offers a platform where potential investors can pursue bilateral and mutually beneficial transactions with pre-verified and creditworthy borrowers. It also helps to strike deals amongst the investors and the borrowers and assist in the repayment of the loan amount. Lendbox offers curated options for serving individuals with different risk appetites. An individual can earn up to 14% p.a. while lending on the Lendbox platform with a minimum investment of Rs. 5,000. Lendbox has served more than 50,000 investors to date and has Assets Under Management (AUM) of more than Rs. 500 crores. Lendbox tends to charge the lowest investment fees as compared to all other P2P platforms in India. Lendbox has also partnered with various other organizations to offer varied investment products beyond the conventional P2P. Lendbox raised funds through a seed round in 2018 from IvyCap Ventures.

Why Lendbox?

Lendbox aims to benefit both investors and borrowers. With Lendbox, you can easily lend your additional money to earn fixed returns, you can also invest across multiple products and earn up to 14% p.a. for a flexible tenure of 3-36 months. As an investor, you can create a seamless passive income source with regular monthly incomes. With Lendbox, you can borrow even if you have a less favorable CIBIL score. Lendbox ensures that the borrowing process is convenient and transparent for you without any hidden charges involved. Other reasons for choosing to invest or borrow through this platform are:

  • High Quality & Consistent Returns: Lendbox offers you a wide range of quality financial products based on your preferences. Through Lendbox you can make informed decisions about your finance and have complete control of your portfolio. It also gives you an opportunity to earn regular passive income.
  • Tracking of Investment’s Progress: Through its app or website, Lendbox offers you every kind of option and control, using which you can effectively and efficiently manage and track your investment’s progress.
  • Personal Wealth Manager: Lendbox also offers you a dedicated relationship manager, who can help you to make better financial decisions and to further expand your wealth and finances.
  • Liquidity Options: Lendbox allows its investors multiple options to withdraw their earnings, thus maintaining adequate liquidity. Investors can choose to withdraw their earnings monthly, at maturity, or even before maturity.
  • Strong Borrower Screening: Lendbox screens a borrower on its platform across more than 200 parameters to check their creditworthiness. If you choose to lend through Lendbox, you can be sure of the ability of the borrower to repay their loan. This ensures that there is minimal default risk under this platform.
  • Robust Collection Mechanism: This feature is essentially beneficial for investors facing difficulty in collecting back their loans. If required by the investors, Lendbox has an in-house team for collection and an RBI registered recovery agent.
  • Pleasant Experience for Borrowers: Lendbox follows a very streamlined and efficient approach to personal finance, thereby making the whole borrowing process a convenient and pleasant experience for the borrowers. It also offers borrowers a chance to send and receive proposals from various prospective lenders to ensure that both parties reach a mutually beneficial arrangement.

Business & Revenue Model of Lendbox

Lendbox is a curated marketplace for Personal Loans, and it also offers other lucrative fixed income investment classes through its platform. Lendbox offers a wide range of lending options to its investors ranging from Rs. 5,000 to Rs. 5 lakhs with the tenure ranging from 3 months to 36 months. Lendbox is an intermediary party providing a common platform to its participants involved in P2P lending. Not only does Lendbox acts as an intermediary, but it also facilitates the entire process involved in P2P lending starting from acquiring borrowers & lenders to collections of EMIs. Lendbox thrives to bring a hassle-free, human-less, and paperless process. Lendbox makes use of its Escrow Cash Management systems to transfer funds between its participants.

Lendbox earns revenue by charging certain fees from both the borrowers and the lenders. A borrower is required to pay a sign-up fee of Rs. 500 and an additional processing fee of 2-6% of the loan amount at the time of the loan disbursal. Investors are also required to pay a registration fee of Rs. 500 and an investment fee of 1% of the invested amount. This fee can be paid either while depositing the funds into the Lendbox Wallet or it is deducted from the EMI repayments. However, for investors depositing Rs. 1 lakh or more into their wallet at the time of registration, the registration fees of Rs. 500 is waived. Other charges on Lendbox includes Rs. 500 per proposal to be charged for cancellation of initiated or accepted proposals.

Conclusion

The P2P lending marketplace in India is all set to be the next big thing in the financial and debt industry. Many new platforms are coming up to offer their services in P2P lending in India. Lendbox faces tough competition from platforms such as i2ifunding, i-lend, Faircent, OML P2P, etc. Lendbox has emerged as an investor-focused platform, assisting its investors in earning stable earnings. To date, Lendbox has onboarded thousands of wealth partners using their seamless API-based partner integration model. Lendbox, no doubt, is set to modernize the debt investments industry.

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