Fintech firm 5paisa.com has launched ‘5paisa Loans’, a peer-to-peer lending platform where one can lend between ₹500 and ₹50 lakh to multiple borrowers and earn interest as high as 36 per cent per annum.

5paisa Loans, an RBI registered NBFC, aims to solve short-term cash requirements of borrowers from all walks of life, while giving an opportunity to lenders to earn on their idle money, the company said.

5paisa Loans screens every borrower using its platform with over 100 variable data points, such as age, location, earnings, previous loan history, social profile, expenditure, etc, and presents the information through a unified score for lenders to make their choice.

Instead of lending to an individual borrower, the platform enables lending to a portfolio of borrowers, thereby, reducing risk and diversifying investment. With this, a lender can lend money to multiple borrowers with different scores and earn fixed monthly returns.

5paisa.com is India’s only diversified online platform for financial products serving about 5.5 lakh customers, according to the company. The entire lending process on 5paisa Loans is completely paperless, diversified, less risky, transparent and digital.

Prakarsh Gagdani, CEO, 5paisa.com said the launch comes when small businessmen and individuals do not have many avenues to borrow while lenders have no opportunity to lend.

5paisa Loans as a platform brings the old ways of lending and borrowing in latest avatar. The artificial intelligence and technology-driven credit underwriting approach is unique in the industry, he said.

“We expect our platform will bring together consenting borrowers and lenders to fulfil each other’s needs in these Covid-19 times, he added.

Apart from peer-to-peer lending, 5paisa.com facilitates învestments on equity, debt and gold on its platform. It charges a flat fee of ₹10 per trade and zero brokerage.

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