But you have to remember that wherever the return is high, the risk is also high, so when you invest in this 12% Club app, keep in mind here the risk may be high.
• How 12% Club App Work?
Many investors wonder how it is possible that an app will give you 12 percent interest on every investment you make. Actually the is working on P2P Lending Working Model, P2P Lending is a platform where money is taken from an investor and invested elsewhere. As you know that Bharat Pay has tied up with many shops all over India due to which the shopkeepers can take loan for their shop with just one click and Bharat Pay collects the loan from the shopkeeper at a rate of 16 to 18 percent. But if you invest in Bharat Pay 12 Percent Club app, you will get 12% return, so Bharat Pay can keep four to six percent margin for itself.
• Is 12% Club App is Safe for Investing ?
The thing to note here is that Bharat Pay does not do these transactions itself, Bharat Pay does these transactions with the help of a NBFC who are known as LenDen Club. LenDen Club is India's biggest player in online P2P Lending but unfortunately LenDen Club's review are below avarage. Many people have completed about LenDen Club that they don't get their money on time and their customer service is also very bad.
But the real question is that is it the same with Bharat Pay 12% Club app also? And the answer is till now who have invested on 12% Club app they don't have any complaint about this. People gets the money on time and the good part is they charges zero when you withdraw and add the money. If you withdraw money less than 1 lakh at one time you immediately get the amount but if the amount is bigger than 1 Lakh, then it may take up to 24 hours to get the money.
But an another important point to be noted. Many people miss out that this 12% interest is maximum interest that you will get. This is UPTO 12%, but now everyone getting 12% but also it is possible you get slightly lower interest on some investment. You can invest maximum 10 lakhs on Bharat Pay 12% Club app but very soon this will be increase to 50 lakhs.
• Negatives & Risk About 12% Club App
The biggest risk of P2P investment that, you have no idea about the borrowers and you had zero control about that. Whoever is borrowing, as long as everything is fine, they are giving the money on time but once they stopped giving the money, every investors returns will definitely take a hit.
Another drawback of this investment is if people are lending the money from this 12% club app and about 4-5% of them are not to able to payback then 100% of investor's return will be seriously affected and obviously you have no about this as well. And you interested money in FD or keep your money in Seving Account you have assured return about 4 to 5% on your money. That means you have assured guaranteed from bank 4-5% returns. But there is nothing like that ine case of P2P lending. That means your money is at a very high risk.
Another problem with P2P lending is those who are taking loans with 16 to 18% interest from this or such people who either do get loans from banks or get them at high interest, so actually you are giving your money to those peoples. Who have either been rejected by bank or the bank feels they are very high risky borrowers.
Another drawback of P2P lending and Bharat Pay's 12% Club app is that if the situation get worse means if in a year for whatever reason 10 to 12% people start defaulting then there are high chance of all the people's will be lost in this and in that case you will face difficulties to withdraw money.
But this 12% Club App is a slightly better model of P2P lending because many Indian shops have Bharat Pay QR code so there are low chances of default but not Zero. But apart from that, this P2P lending is an extremely risky investment even more riskier than stock market, and we will request you to stay away from this.
If you want to invest for very short period like 1-2 months, there are many other alternative -like Mutual fund investment and Stock market investments which have far better risk reward.