Asset diversification is key to creating a sustainable and prosperous personal finance portfolio, but bulk of Indians make the mistake of not paying enough attention to this basic investment principle.
It is not surprising that over 50% of households’ savings in India is parked in savings accounts and fixed deposits with banks, that are widely considered to be the ‘safest’ place to invest money.
However, such deposits yield the lowest interest across asset classes, and hence not able to keep pace with annual inflation, especially in a developing economy like India.
Oldest form of finance is back in a brand-new avatar- social finance!
Lending to friends, family and acquaintances is something that most people have experienced at some point in their lives. In fact, 3 out of 4 people in India, reach out to their trusted contacts in times of need, before checking with banks or other lending companies.
It is completely legal and reasonable to charge interest while lending money to a trusted contact but historically, in the absence of an organized mechanism, most of these transactions have remained either in cash or bank transfers but without adequate record keeping or repayment schedules and hence restricted ability to charge interest.
But for the first time in India, SaveIN, fintech platform, is revolutionizing social finance, i.e., lending and borrowing between trusted contacts. One can simply download SaveIN application from Google Playstore and iOS store, register as a lender, set preferred limits, including maximum loan amount and desired interest rate and allow borrowers in your own phone network to reach you for small amount, short term loan, through the platform!
Alternate investment class yielding higher interest
SaveIN allows a lender to link any existing bank account for effecting payments and allows to charge anywhere between 0%-36% interest p.a. depending upon individual choice and preference. The platform will then allow borrowers to reach you, subject to them agreeing to the chosen loan terms. All this happens completely digitally, with all records being maintained on the SaveIN platform. SaveIN also sends timely reminders and notifications to borrowers, hence facilitating repayments on behalf of lenders.
For those looking for alternate investment opportunities, this can be an extremely useful avenue since the person is in charge of making the decision to lend, and only to those who you already know and are already connected to- whether as a family member, friend or an acquaintance!
Is my money safe?
A quick glance at popular asset classes like shares, mutual funds, real estate, gold etc, will tell you that all assets have inherent pros and cons, therefore, it is imperative for an individual to make a balanced decision while investing money. Loans given to friends, family and other acquaintances also fall in the same category.
One should be sure of the profile of the borrower, your relationship with the borrower and assessment of the borrower’s capacity to repay. SaveIN platform has inbuilt checks and balances, including records, reminders, notifications and provisions to not allow those who default on loans, to borrow again through SaveIN, thereby making the experience much safer when compared to lending through informal means.
Download SaveIN today and experience the power of social finance!