Chennai (Tamil Nadu) [India], May 5 (ANI/BusinessWire India): Monexo Fintech Private LTD, an RBI licensed peer to peer digital lending marketplace has launched its simple paperless digital app that enables investors to earn 13 per cent pa and beat inflation.
After attaining learnings, going through a black swan event (COVID) and seeing consistent success Monexo has now launched this simple investment app to make itself accessible to a wider demographic of investors. This investment asset diversifies the investor’s portfolio across farmer loans, social impact loans, loans to young salaried professionals and students. Investors’ funds are diversified across multiple loans which bring down risk and ensure 2X of FD month on month.
Speaking about the investor app Mukesh Bubna, CEO of Monexo Fintech Private Ltd said, “With our flagship investor app we aim to resolve two critical pain points in the market today. One is introducing a simple digital app that enables every Indian to start investing in a product that helps earn twice the fixed deposit returns. The second is that farmers, women entrepreneurs, students, and young salaried professionals can build their credit score, thereby becoming credible borrowers by entering the fold of the credit bureau with affordable loans.”
“Today fixed deposits are one of the most widely used savings tools. However, if a retired person has invested Rs 10L for a period of 1 year, he will earn Rs 50,000 at a rate of 5 per cent pa. At the current inflation rate of 6.95 per cent the value of the 10 lakhs invested depreciates by Rs 69500. As a result, the investor will incur a loss of Rs 19500 every year for the investment of 10L. This loss becomes higher after paying the tax for the Rs 50000 earned after a year. On the Monexo platform retired investors can earn 130000 in a year and beat inflation by 6 per cent in a year.”
Students and young professionals can make long term plans by opening a SIP with Monexo and earning high returns. For example, an investor planning to buy a bike for Rs 1 lakh can start a SIP for Rs 5000 a month on the Monexo platform. He will earn Rs 4225 at 13 per cent pa on an investment of Rs 60000 over a period one year. Whereas he would have earned just Rs 1300 for a monthly saving of Rs 5000 in a savings account or Rs 1950 for a monthly saving of Rs 5000 in a recurring deposit account.
Monexo’s risk assessment platform categorizes borrowers in three risk categories depending on the financial footprint of the borrower – conservative, medium, and high risk. Diversifying across these categories can earn investors upwards of 13 per cent pa annual. Like all investment tools P2P lending is also subject to certain amount risks however, the risk factor is mitigated by spreading the invested amount across various loans accounts. In contrast, investment in equity linked mutual funds is subject to market risk and investment in debt linked funds give only about 7 per cent annual returns. E.g., we have investors who have Rs 50 Lakh on the platform and have invested across 7000 loans earning them a monthly income of Rs 55000 to 60000. As per RBI mandate Rs 50L is the maximum investment that can be made on Monexo by an individual.
M Sundar Co-Founder at Monexo Fintech Private Limited said, “We believe that Monexo is a platform that allows investors earn attractive returns and contribute to building a financially inclusive and financially literate India on the borrowing side.”
Showcasing their commitment to help investors earn high returns, Monexo launched their new state of the art office in Nungambakkam, Chennai as well as hiring rapidly in the next 6 months.
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