BharatPe forays into consumer lending, investment space with ‘12% Club’

Fintech firm BharatPe forayed into the consumer space with the launch of 12% Club, which will work in the areas of consumer lending and investments. With 12% Club, available on Google Play Store and Apple App Store, consumers will have an option to invest and earn up to 12 per cent annual interest or borrow at a competitive interest rate of 12 per cent.

BharatPe has partnered with the RBI-approved NBFCs to offer these services to consumers. The company aims to achieve an investment AUM of $100 million and a lending AUM of$ 50 million from this product by the year-end.

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The consumers on the 12% Club app can invest their savings anytime by choosing to lend money through BharatPe's partner P2P NBFCs. “Additionally, consumers can avail of collateral-free loans of upto Rs 10 lacs on the 12% Club app for a tenure of 3 months, as per their convenience. There are no processing charges or pre-payment charges on the consumer loans. The loan eligibility will be defined based on a number of factors including consumer's credit score, the shopping history using PAYBACK loyalty system or the payments done via BharatPe QR,” a company statement said.

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The consumers investing via the 12% Club app can put in a request to withdraw their investment anytime, partially or completely, without any withdrawal charges, the company said.

Users can use the app by investing as low as Rs 1,000 and get daily credit of interest. The upper limit for investment by an individual is currently set at Rs 10 lakh and would be increased to Rs 50 lakh over the next few months.

Suhail Sameer, Chief Executive Officer, BharatPe said, "As we begin our journey on the consumer side, our focus will be to launch products that are industry-shaping, 100% digital and easy to use. This one-of-its-kind product for consumers has been designed to ensure industry-best benefits both for lenders, as well as borrowers."

Suhail said BharatPe's P2P lending product for merchants has been one of the industry-defining products with gross investments of close to $700 million done by over 6.3 lakh merchants.

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