PUNE: LenDenClub, one of the leading peer-to-peer lending platforms in India, on Friday released its 2019 report on key borrowing and lending behaviour of consumers (borrowers and lenders).
According to the report, Pune, Mumbai and Hyderabad ranked amongst the top in loan repayment. Mumbai and Bengaluru topped the chart for the maximum number of lenders and borrowers respectively on P2P platforms.
New age technology Unified Payments Interface (UPI) with 50 per cent users has topped the chart for loan repayment, followed by 47 per cent of ECS payment in P2P lending.
Education and needs like family functions, home renovations were the other key reasons to borrow after emergencies.
LenDenClub, which offers loans up to Rs 10,000, has analysed the annual data of more than 4,00,000 users and has come up with the report.
When it comes to borrowing and spending, Bengaluru is ahead in terms of people having the highest credit demand while Mumbai was second. The report showed that the highest numbers of lenders were from Mumbai, followed by Bengaluru and Hyderabad.
The findings show that the young, tech-savvy population with financial aptitude is much ahead of its forebears, as 40 per cent of lenders and 53 per cent of borrowers are in the age bracket of less than 30 years. The findings also reveal that the younger generation is more financially responsible and is comfortable borrowing and lending on new-age digital platforms.
The data also revealed that 12 per cent of the borrowers and 16 per cent of the lenders were women, which suggests that salaried women’s loan borrowing market is under-penetrated, as compared to their male counterparts. Customers from business backgrounds topped the chart along with CXOs to mid-managerial level and salaried individuals as investors on the platform.
63 per cent of the borrowers availed credit for emergencies, while 37 per cent availed for aspirational needs. This in turn suggested that emergencies were one of the main reasons for taking loans followed by aspirations such as family functions and home renovations.
Customer analysis also has certain fascinating insights. Tuesdays, Wednesdays and Thursdays were the preferred days by borrowers for a credit application. The average percentage of repeat borrowers is 37 per cent, amongst which the loan frequency of repeat borrowers is three times.
On the occasion, Founder & CEO of LenDenClub, Bhavin Patel, said, “There is no hiding the fact that the usage of UPI in India is growing and has attracted the attention of the entire world. The same can be seen in our data, where the younger technology-savvy generation is using newer technologies such as UPI for transactions.”
“Considering only 16 per cent of the lenders on our platform are women, we will work towards creating awareness and reducing the gender gap. Also, the data reveals that the majority of loans are availed for emergencies. This is the first of its kind data and will help investors to make informed decisions on borrowers through our platform,” said Patel.
REPORT NAMES TOP CITIES
Pune, Mumbai and Hyderabad ranked amongst the top in loan repayment, shows study by LenDenClub.
