Fintech company BharatPe on Wednesday, August 25 announced its foray into the peer-to-peer (P2P) consumer space with the launch of its product 12% Club. Available on Google Play Store and Apple App Store, 12% Club consumers will have an option to invest and earn up to 12% annual interest or borrow at a competitive interest rate of 12%.
BharatPe has partnered with RBI approved NBFCs (non-banking financial companies) to offer this investment-cum-borrowing product for consumers. The company said it aims to achieve an investment AUM (Assets under Management) of $100 million and a lending AUM of $50 million from this product by the end of the current fiscal.
As per the company, consumers of the 12% Club app can invest their savings anytime by choosing to lend money through BharatPe’s partner P2P NBFCs. Additionally, consumers can avail collateral free loans of up to Rs 10 lakh on the app for a tenure of 3 months, as per their convenience. There are no processing charges or pre-payment charges on the loans. The loan eligibility will be defined based on a number of factors including the consumer’s credit score, the shopping history using PAYBACK loyalty system or payments done via BharatPe QR.
“The consumers investing via the 12% Club app can put in a request to withdraw their investment anytime, partially or completely, without any withdrawal charges. They can start their investment journey by investing as less as Rs 1,000 and enjoy daily credit of interest. The upper limit for investment by an individual is currently set at Rs 10 lakh and would be increased to Rs 50 lakh over the next few months,” the company said in a statement.
“As we begin our journey on the consumer side, our focus will be to launch products that are industry shaping, 100% digital and easy to use. This one-of-its-kind product for consumers has been designed to ensure industry-best benefits both for lenders, as well as borrowers. We believe that 12% Club will strike the right chord with a diverse set of new-age digitally savvy customers – from young salaried individuals to professionals with disposable incomes, as well as investors who park their funds in various financial instruments,” said Suhail Sameer, Chief Executive Officer, BharatPe.
BharatPe recently entered the unicorn club with a Series E fundraise of $350 million at a valuation of $2.85 billion. The round, led by Tiger Global, also saw new participation from Dragoneer Investment Group and Steadfast Capital.
Kunal Shah-founded CRED launched a similar product last week called CRED Mint, in partnership with Liquiloans. Members who participate in CRED Mint can earn interest rates of up to 9% per annum, higher than traditional methods, the company said. CRED Mint will make the loans available through CRED Cash, a lending product created for CRED members, in partnership with licensed banks and NBFCs.