Investing is one of the most important and useful habit that one can inculcate in himself that will not only help him in immediate future but will also take care of your long term future needs. Investing is both art as well as science as it has its own language and already set procedures. Accounting is the language of investing and business. For investing your money, you need to have a good knowledge of investing terminologies as well as great analytical skills to generate above average returns from the market.

For a layman, it is not easy to decipher these terminologies easily. Thankfully, a new form of investment strategy has taken shape quite well in recent past. This investment strategy is peer to peer lending. This might be a new phenomenon in India but it is already quite a huge success across Europe, North America and China. Peer to peer lending in India is based on social lending philosophy in which, group of lenders funds a common borrower by lending on these platforms.

Investors are looking at this great opportunity of Peer to peer lending in India with great hope. Due to some recent developments like demonetization, investment in other asset classes like real estate and fixed income instruments like fixed deposits are not that positive from point of view of generating returns. Already, some banks have slashed their in fixed deposit rates by 2-3 bps and this has lead for investors to search for other investment opportunities and Peer to peer lending in India are among top of them.

You can start investing in this social lending phenomenon with an amount of 50,000 also. A Peer to peer lending in India offers lender to pick and choose from list of borrowers. A lender should consider following factors to generate amazing returns from his initial investment of Rs 50,000-

•         Diversify across risk ratings among different borrowers.
•         Diversify across different lending platforms.
•         Logical analysis of each and every customer from repayment point of view.
•         Invest in small amounts initially.
•         Reinvest your money into the platform again.

Investing in these peer to peer lending platforms is not a rocket science. You just need to apply your common sense and decision making ability to generate amazing returns. Some of the social lending platforms like prosper, Lendingclub, Zopa etc have already created a name for themselves world over. With all the recent happenings in India on economic front we would surely like to advise you invest your money, however small it is, and see the amazing benefits of social lending.