Get 12% Interest By Lending Money To Strangers

Most of us have lent money to our friends at 0% interest rate.

As per my poll on Instagram, around 72% of you have not gotten your money back.

In banking terminology, it means that the money lent has become NPA.

⬇️ Tag those friends in the comment section below to let them know that they are an NPA.

🙇🏻‍♂️My suggestion - Do not lend money to friends especially if they are close friends. If you do, then assume it's gone and don't ask for it back. You do not want money to be the reason for breaking your friendship.

Money is important but not more important than your relationships

Naturally, most of us are not comfortable lending money to strangers at 0% interest rate.

I mean- Why would you?

How about if you get 9-12% interest rate. This kind of returns cross the jiggle territory.

Usually banks do this on your behalf. They take your money in a savings account and give it to businesses. They charge 12% to the business, give you 4% and keep the rest. They guarantee that your money will never be lost and even insure you up to 5 lakhs.

What if you want to lend it yourself?

That's what P2P Lending (Peer to Peer lending) is all about.

Now you take all the risk. There is no insurance. But the returns are juicy.

This falls under the realm of alternate investment assets. Other investment options in this asset class are crypto, lease financing, venture capital, venture debt etc.

This asset class can be upto 10-15% of your portfolio because they are mostly delinked from stock market returns and act like a hedge.

Some of the companies in India offering P2P lending are: Cred Mint, BharatPe, RupeeCircle, LenDenClub and Finzy.

➡️Have you invested in P2P lending? Let me in the comment section below along with your experience (both good and bad)

Let us help each other know what platforms to avoid and what to trust since this is relatively new.
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