12 Percent Club –Fintech Organizations are quick creating and giving customers the best monetary choices. Digital platforms allow users to lend, obtain high-interest loans, and transfer funds. In India, BharatPe Fintech is well-known. It provides free UPI payments to small businesses, a BharatPe QR code, and access to low-interest loans of up to Rs. 7 lakhs.
12 Percent Club
Using a one-of-a-kind product called 12% Club, the BharatPe Fintech has provided fantastic deals for peer-to-peer P2P lending. The app is made to help users earn 12% interest on the money they save and borrow at a rate of 12%. BharatPe has merged with Central Bank-approved non-banking financial institutions to carry out the plan. The partnership will help get the product to people who are eligible to buy it. The company wants to invest $100 million in assets under management (AUM). By March, it will also have $50 million in lending assets.
12 Percent Club Details
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12% Club Product Features
Salient features of the product are as follows-
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- The product has a yield of 12% per Annum
- It provides daily Interest Credit which means Annualized yield based on daily reinvestment = (1+12%/365)^365 = 12.7%
- Till now no defaults have been seen on the older Merchant Lending product
- The Borrowers are the merchant using Bharatpe till now.
- Maximum Investment INR 10 Lakh
BharatPe Business Analysis
The Business Model followed by BharatPe 12% Club is as below.
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Bharatpe Onboarded Merchants
On the majority of items, a retailer’s margin is between 8% and 10%. The fact that these Kirana shops had to deal with fees and a loss of margin due to the digital channel was one of their biggest issues. There was no wallet or payment gateway that took less than 1.5% commission. Additionally, virtually no awareness of the UPI system existed. Bharatpe took advantage of this opportunity to develop a USP for free.
BharatPe Provides Credit
To purchase the items from distributors, shopkeepers require funds. As a result, there is always a money gap between buying and selling goods. The majority of shopkeepers ultimately take money from the chaotic market. Bharatpe filled this void by providing inexpensive credit.
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Bharatpe Data Analysis
The kinds of transactions a shopkeeper makes, how they use other products on the platform, etc.—all of which provide them with an understanding of the cash flow of the business. To make a loan offer, this is then looked at alongside the merchant’s credit score and loan history. The NBFC partner of the fintech company will process the loan and credit the merchant’s account in a few days for a willing shopkeeper. Everything is digital, hassle-free, and, perhaps most importantly for the proprietor, free of collateral.
Default Risk
- BharatPe claims to have one of the best repayment rates on the market, at 96 percent. This is due to the fact that, rather than requiring the merchant to pay the daily installments, it deducts the amount from the QR transactions amount prior to each day’s bank settlement. As a result, if a business attempts to default, it runs the risk of being blacklisted.
- With the 12% Club, they are now participating in peer-to-peer lending and focusing on consumer loans rather than only merchant loans.
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12% Club Product Risk and Reward
Through a partnership with Lendenclub, 12% Club Bharatpe is lending. This is because they lack the NBFC license necessary to distribute loans. I have previously utilized Lendenclub and was dissatisfied with its performance. However, the pool of borrowers is vetted by Bharatpe, so the default risk is lower than in the Lendenclub pool. Since Bharatpe is unable to lend or borrow, the investment is made through Lendenclub and the disbursement is made through Hindon Mercantile. In terms of the Returns/Reward Chart, the product is not bad because the yields are high and the Bharatpe borrower pool is better than fresh borrower for other lending. I have been receiving daily interest on my account up until this point.
It must be determined whether Bharatpe will stick with its Merchant borrowers or target a new pool of borrowers. That’s a risk that hasn’t been tested yet. Investors can withdraw funds immediately from the platform, which, in my experience, has been seamless. However, individuals ought to be aware that there is a possibility of an asset-to-liability mismatch and that immediate withdrawal is not always guaranteed! They do not accept any liability for errors.
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CRED Mint vs 12% Club
In conjunction with Liquiloans, a P2P NBFC that is registered with the RBI, Cred had also recently launched CRED Mint to assist its members in earning interest of up to 9% annually by investing between Rs 1 and 10 lakh.
Cred competes with Bharatpe and provides investors with 9%. Bharatpe’s product is superior to Cred when compared to that of Cred.
- BharatPe provided financing to its regular customers, and the borrower’s extensive transaction history with BharatPe is evidence of this. Cred gives loans to anyone with a high CIBIL score, but there is no guarantee that they will repay them. Bharatpe’s entry into the new borrower market remains to be seen.
- Bharatpe has a greater cushion for absorbing defaults because there is a significant yield difference—3 percent—between the two.
- Compared to Cred, a brand-new product, the BharatPe product has undergone extensive testing.
- When a Merchant borrower defaults on a Bharatepe loan, the ecosystem blacklists them.
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12% Club Investment Process and Amount
Registration is a breeze. Simply utilize the link 12% Club Complete the KYC and include your bank. Even though the product may appear safe, you should avoid investing more than 5% of your net worth in it due to BharatPe’s lack of a guarantee and the possibility of capital loss in the event of high defaults. This product can get some money from the liquid fund.
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Conclusion
If you’re looking for a safe and reliable investment opportunity, Twelve Percent Club is definitely worth checking out. Twelve. Club is a diversified investment platform that offers a wide range of investment options, including equities, bonds, commodities, and debt instruments. The platform is well-respected and has a strong track record of delivering high returns to investors over the past several years. Overall, Twelve Percent Club is a reliable and trustworthy investment platform that is well worth considering if you’re looking for an excellent long-term return on your investment.
FAQ’S
What is 12% Club by BharatPe?
On the 12% Club app, consumers can invest savings anytime by choosing to lend money via BharatPe's partner P2P NBFCs
Can I withdraw money in 12% Club??
“But you can always withdraw interest from the wallet. And reinvest it. Per annum basis. Interest based on 12% p.a. is credited to the wallet on a daily basis.
Can 12% club be trusted?
There have been some financial irregularities at Bharatpe which have also been covered by news articles. As long as these audits are not settled, I would recommend everyone to take their money out of 12% club/Bharatpe as I have.
What is the minimum amount in 12% Club?
Consumers investing via the app can put in a request to withdraw their investment anytime, partially or completely, without any withdrawal charges. They can start by investing ₹1,000 and the upper limit for investment by an individual is currently set at ₹10 lakh.
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