The key to managing your risk in P2P lending is diversification and reinvestment.
Diversification: Always invest smaller amounts in more number of borrowers. The usual recommendation is to invest as low as INR 500 per borrower to limit your exposure, subject to the platform's minimum permissible limit for a loan.
Reinvestment: It refers to further investing the amount received from repayments to increase your spread of borrowers and for you to get a compounded benefit on your investments. In simpler terms, let your earned money , earn more for you!
All this comes in addition to our strong credit model which screens the borrower over 200 checkpoints and gives you a risk profiling for the borrowers. With your returns as our first priority, we have designed this robust credit model which approves only 30-35% of the loan applications as credit worthy.