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LenDenClub introduces fixed maturity peer-to-peer investment plan

By Leandra Monteiro

July 29, 2022

  • AuM
  • Digital Lending
  • FDs

LendenclubP2P Lending platform, LenDenClub, introduced FMPP, i.e. ‘Fixed Maturity Peer-to-Peer Plan’ – a new-age, term-based P2P plan that enables investors with expected returns of 10-12% p.a. for a minimum of ₹10,000 per investment. The company aims to onboard 1 million investors and clock-in an AUM of ₹10 billion from FMPP by the end of FY23.

LenDenClub, an RBI-approved NBFC-P2P that serves more than 2 million investors, has designed FMPP such that an investment amount is hyper-diversified into a vast pool of borrowers, owing to which the default rate is drastically minimised, thus offering investors risk-mitigated returns. The new, AI- and ML-based algorithms are more potent than before because they have been fine-tuned and trained on proprietary first-party data acquired by the company since inception. This enables FMPP to offer hyper-diversification as a unique feature which mitigates risk and offers stability of returns.

LenDenClub’s FMPP investment plan is a term-based investment plan with flexible tenures of 1, 2, 3, 4 or 5 years. The invested funds are reinvested several times throughout the tenure, thus giving the investors the power of compounding along with an annualised yield of up to 12.21 to 15.25% p.a. FMPP is a non-market-linked alternate investment option which makes it immune to the risks of capital erosion on account of market volatility and therefore offers investors enhanced returns along with an added layer of protection to their invested principal. Further, because of the product construct, it competes with other fixed income assets classes like FDs, Gold Bonds etc.

On the launch of FMPP, Bhavin Patel, Co-founder & CEO of LenDenClub said, “FMPP is a pioneering, customer-first investment offering in this era of low FD rates and volatile stock-market conditions. It has a completely new algorithm for capital allocation. It has been under development and testing for the past 18 months and it is finally live. LenDenClub’s FMPP investment plan is truly an ‘alternative investment avenue’ for all classes of investors, whether retail or HNI. Technology is at the heart of everything we do. By introducing key technology-enabled features such as hyper-diversification, auto-investment, and reinvestment into our platform, we are eyeing to drive a pivotal shift in the way investments are planned and executed, especially by the younger and tech-savvy audiences. With the current investment landscape, beset with high inflation and market volatility, FMPP adds a new paradigm of stability and transparency, which has assumed precedence by far, among investors.”

“Our single-minded focus is to ensure that over 99% of our investors earn stabilised returns of 10-12% p.a. The newly refined algorithm adds a high degree of certainty to this core product proposition and substantiates our ethos of trust, transparency, and stability towards our customers.” he further added.

FMPP, is a fixed investment plan, wherein long-term lock-in facilitates the compounding to kick-in and thereby improves the yields over the due course. With a higher annualised yield of up to 12.21 to 15.25% coupled with the power of compounded interest of stabilised returns and marginalised NPA, one can potentially double their investments in FMPP in about 6 years’ time. While the minimum investment is ₹10,000 per investment, the structure of the plan enables investors to open multiple FMPP accounts with the total portfolio value not exceeding 5 million which is in line as per guidelines set by RBI. Auto investment and portfolio optimisation offered through an enhanced app experience makes FMPP an indispensable investment option for smart investors.

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