Investing

12% Club Review- Features, Advantage & Disadvantages

In this blog post, we'll dive into the 12% Club, how it works, its features, advantages, disadvantages, and share our opinion on whether it's a safe investment option.

Introduction

Launched in 2019, the 12% Club is a peer-to-peer (P2P) lending platform offered by BharatPe, a leading Indian fintech company.

In this blog post, we’ll dive into the 12% Club, how it works, its features, advantages, disadvantages, and share our opinion on whether it’s a safe investment option. We want to give you all the details you need to make an informed decision about this opportunity.

Means, the platform connects borrowers directly with individual or institutional lenders, bypassing traditional financial intermediaries like banks.

You can consider reading my “Complete Guide” on P2P Lending in India.

What is the 12 Percent Club?

Launched in 2019 by BharatPe, a prominent fintech company in India, the 12 percent Club operates as a P2P platform connecting individual lenders with borrowers seeking personal loans.

Through its user-friendly mobile app, users can invest in a variety of loan options ranging from education and medical expenses to business ventures and travel, all promising a fixed monthly return of 12%.

With features like automatic reinvestment and early exit options, the 12 percent Club presents itself as an attractive proposition for potential investors seeking high returns.

How does 12 Percent Club work?

The 12 Percent Club is a unique investment opportunity offered by BharatPe, an Indian digital payments platform.

It’s a P2P lending platform (12 percent Club) that offers a guaranteed interest rate of 12% per annum. The concept is simple: investors lend money to BharatPe for a fixed term, and in return, they receive a guaranteed interest rate of 12% per annum.

This investment scheme has been gaining popularity in India, as it offers a high rate of return compared to other investment options available in the market.

Investors can choose the term for which they want to invest, ranging from 3 months to 1 year. The investment amounts are placed with RBI-regulated P2P NBFC, Innofin Solutions Private Limited (“LenDenClub”), and NDX P2P Private Limited (“Liquiloans”), and the borrowing is extended by RBI-regulated NBFC – Hindon Mercantile Limited.

The return is earned daily on your investment based on deployment with registered borrowers through the platform.

Borrowers can borrow money anytime at a 12% interest rate and repay anytime with no prepayment charges.

The minimum repayment period is 3 months, and the maximum repayment period is 1 year. The loan amount ranges from Rs. 10,000 to Rs. 100,000, and the repayment is done after 3 months. Users can foreclose the loan anytime they want with no foreclosure charges.

This is particularly useful for those who want to diversify their investment portfolio with short-term investments.

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Features of the 12 Percent Club

The key features of the 12 Percent Club, a P2P lending platform offered by BharatPe, include:

High Returns: Investors receive a guaranteed interest rate of 12% per annum, which is higher than many traditional investment options.
Flexible Investment Options: Investors can choose the term for which they want to invest, ranging from 3 months to 1 year, providing flexibility in managing their investment portfolio.
Ease of Use: The platform is designed to be user-friendly, allowing investors to easily lend money and earn returns.
No Joining Fees: There are no joining fees or hidden charges, making it accessible to a wide range of investors.
Daily Returns: The return is earned daily on the investment based on deployment with registered borrowers through the platform.
No Charges for Adding Money: Investors can add money using UPI, Debit Card, or Net Banking, and there are no charges for adding money to the 12% Club.
Regulated Partners: The investment amounts are placed with RBI-regulated P2P NBFCs, providing a level of regulatory oversight and security.
Borrowing Opportunities: Borrowers can also benefit from the platform by borrowing money at a 12% interest rate and repaying with no prepayment charges.

While the 12 Percent Club offers attractive features, it’s important for investors to carefully evaluate the associated risks, such as liquidity risk and credit risk, and to conduct due diligence before investing.

Additionally, the lack of deposit insurance should be considered when assessing the overall risk of the investment.

Advantages of the 12% Club

The key advantages of the 12% Club include:

High Returns: The 12% Club offers a guaranteed interest rate of 12% per annum, which is higher than many traditional investment options
Guaranteed Returns: Investors receive a fixed and guaranteed interest rate of 12% per annum on their investments, providing a predictable income stream
Ease of Use: The 12% Club app provides a user-friendly interface, making it easy for investors to create an account, add money, and start earning returns on their investments.
Flexible Investment Options: The platform offers flexible investment terms, allowing investors to choose the duration of their investment, ranging from 3 months to 1 year

Overall, the 12% Club presents an opportunity for investors to earn attractive returns with the flexibility of choosing investment terms, all through a user-friendly platform.

However, it’s important for investors to carefully evaluate their risk appetite and conduct due diligence before investing, as with any investment opportunity.

Disadvantages of the 12% Club

The key disadvantages of the 12% Club include:

Limited Investment Options: The 12% Club has restrictions on the maximum investment amount, limiting the investment options for users.
Liquidity Risk: There is a risk of not being able to access funds invested in the 12% Club when needed, as the investment is for a fixed term, and early withdrawal may not be possible without penalties.
Credit Risk: Investing in the 12% Club exposes investors to the risk of borrower default, as the returns are based on the deployment of funds with registered borrowers through the platform.
Lack of Deposit Insurance: Unlike traditional bank deposits, the 12% Club does not offer deposit insurance, which means that the invested funds are not protected in case of platform insolvency or borrower default.

It’s important for potential investors to carefully evaluate their risk appetite, conduct due diligence, and consider the limitations and risks associated with the 12% Club before making investment decisions.

12 Percent Club Earning Calculator

To calculate your potential earnings with the 12% Club, you can use the 12% Club Earning Calculator available on the AAAeNOS.com website.

This calculator allows you to estimate your earnings on a daily, monthly, or yearly basis, based on the amount you plan to invest in the 12% Club.

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Transparency and Communication in 12 percent Club

For any investment platform, transparency is paramount.

Unfortunately, the 12% Club raises some concerns in this regard. Loan information and borrower profiles are often limited, making it difficult for investors to conduct thorough due diligence and make informed decisions.

This lack of transparency can be viewed as a red flag, particularly for cautious investors seeking clear insights into the risks associated with their investments.

12 Percent Club Ease of Use

The 12% Club, offered by BharatPe, provides a user-friendly and intuitive investment platform, making it an excellent option for those new to investing.

The app is designed to be simple and easy to use, with a straightforward interface that allows users to navigate their portfolios, view their investments, and make transactions with ease.

Additionally, the platform offers a diversified investment portfolio, including peer-to-peer lending, which can help minimize risk and increase potential returns.

Alternatives of 12 Percent Club

It’s crucial to remember that the P2P landscape is vast and offers various options beyond the 12% Club. Established platforms like Faircent and Lendbox provide P2P options with lower, but potentially safer, interest rates and greater transparency.

These platforms often have stricter borrower eligibility criteria and more detailed risk assessments, offering a potentially more secure investment environment. Ultimately, the choice comes down to your individual risk tolerance and financial goals.

Conclusion

In conclusion, the 12 Percent Club is a unique investment opportunity that offers a high rate of return compared to other investment options available in the market.

However, it’s important to understand the risks associated with investing in P2P lending platforms and to conduct thorough research before investing.

If you’re interested in the 12 Percent Club, we recommend downloading the app and exploring the platform’s features and offerings.

And as always, it’s important to consult with a financial advisor before making any investment decisions.

FAQs

Is 12 Percent Club safe to invest in?

Naturally, the first question on everyone’s mind is: can the 12% Club actually deliver on its promise of guaranteed 12% returns?

User experiences paint a somewhat nuanced picture. While some boast consistent returns and a seamless investment journey, others express concerns about hidden fees, delayed loan repayments, and lower effective returns.

Notably, the platform maintains a 99.8% repayment success rate, but individual stories paint a slightly different picture, highlighting occasional defaults and delays.

Nevertheless, the 12% Club isn’t immune to risks. Borrower defaults, platform failure, and even cybersecurity breaches pose potential threats to your invested capital.

While the platform employs risk assessment tools to evaluate borrowers, some user reviews raise concerns about the comprehensiveness of these assessments. Data security is another aspect to consider, as no platform can guarantee complete immunity to cyberattacks.

Minimum Investment in 12% Club to invest

The minimum investment amount on the 12% Club varied depending on the loan you chose to invest in.

Some loans offered minimum investments as low as Rs. 10,000, while others required higher initial investments.

Is 12 Club approved by RBI?

Yes, the 12% Club is approved by the Reserve Bank of India (RBI).

The platform has partnered with various Non-Banking Financial Institutions (NBFCs) that are approved by the RBI, such as Hindon Mercantile Limited, LendenClub (Innofin Solutions Private Limited), and LiquiLoans (NDX P2P Private Limited).

This partnership with RBI-approved NBFCs ensures that the 12% Club operates within the regulatory framework set by the RBI for such financial activities.

Therefore, the 12% Club is a legitimate and approved investment platform.

Is 12% Club app is genuine?

The 12% Club app, developed by BharatPe, is a genuine platform that offers users the opportunity to invest and borrow funds at a 12% interest rate.

The app is designed to be user-friendly and intuitive, with a simple interface that allows users to navigate their portfolios, view their investments, and make transactions with ease.

Can we withdraw money from 12% Club anytime?

Yes, users can withdraw their invested amount from the 12% Club anytime, either partially or in full, before the loan matures, without any withdrawal charges.

The withdrawal process is described as easy and instant, with the amount selected being credited to the user’s bank account.

Additionally, the return earned on the investment is credited daily, and users can withdraw their daily earnings with or without principal in the usual fashion

Who has launched 12% Club?

The 12% Club has been launched by BharatPe, an Indian digital payments platform. The platform is designed to provide users with the opportunity to earn a return of up to 12% on their investments.

The app is made to help users earn a 12% interest on the money they save and borrow at a rate of 12%. The platform partners with various P2P NBFCs to provide users with investment opportunities.

The 12% Club is a registered trademark of Resilient Innovations Pvt. Ltd., which is the developer of the 12% Club app.

What is the legal name of 12% Club?

The legal name of the 12% Club is “Resilient Innovations Pvt. Ltd.”

This indicate that the 12% Club is a registered trademark of Resilient Innovations Pvt. Ltd., the developer of the 12% Club app. The platform is described as a technology-based application for borrowing and lending funds, powered by BharatPe and in partnership with RBI-approved NBFCs.

Is BharatPe 12% safe?

The safety of the BharatPe 12% Club as an investment option has been a topic of discussion. Some individuals have expressed concerns about the platform’s safety and whether the high returns it offers are too good to be true.

There are also questions about the platform’s approval by the Reserve Bank of India (RBI) and the potential risks associated with investing in it.

How does 12 Club make profit?

The 12% Club, powered by BharatPe, operates as a technology-based application for borrowing and lending funds. The platform partners with various P2P NBFCs to provide users with the opportunity to earn a return of up to 12% on their investments.

The return is earned daily on the investment based on deployment with registered borrowers through the platform. The 12% Club acts as a sourcing and technology partner to its NBFC partners and does not guarantee the return on investments.

What is the difference between cred mint and 12 percent club?

The 12% Club and CRED Mint are both peer-to-peer (P2P) investment platforms that offer opportunities for individuals to earn returns on their investments. Here are some of the key differences between the two platforms based on the provided search results:

Interest Rates: The 12% Club offers a guaranteed interest rate of 12% per annum, while CRED Mint offers returns up to 9%.
Accessibility: The 12% Club is available through BharatPe, a well-known fintech platform in India, and the onboarding process is described as super easy1. On the other hand, CRED Mint is an exclusive offering and requires an invite or early access application through the CRED app.
Minimum Investment: The minimum investment amount for CRED Mint is not explicitly mentioned in the search results. However, the 12% Club allows users to invest as little as 1000 INR, offering full liquidity and a 12% interest rate.
Investment Options: The 12% Club is described as a diversified investment platform that offers a wide range of investment options, including equities, bonds, commodities, and debt instruments. CRED Mint, on the other hand, offers an exclusive peer-to-peer investment in partnership with Liquiloans.
Withdrawal Process: The 12% Club is praised for its easy withdrawal process, with interest being withdrawn regularly and instantly into the user’s bank account1. CRED Mint also allows users to request a withdrawal at any time.

In summary, the 12% Club and CRED Mint differ in terms of their interest rates, accessibility, minimum investment amounts, investment options, and the platforms through which they are offered.

Individuals considering these platforms should carefully evaluate their features and benefits to determine which aligns best with their investment goals and preferences

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Manu Dhiman

MBA- Finance (S.P Jain)

I love to write and discuss about personal finance topics: mutual funds, stock market, credit cards, insurance, real estate, etc. For daily video content ⤵️