LOST to Lendbox. Review on Lendbox

Lendbox model is dangerous to lenders and very very lucrative and conducive for defaulting/cheater borrowers.  I lost lot of money @Lendbox.   Experience is like finding comb after getting bald. Here is how!

What lendbox do: Lendbox connects lenders and borrowers online. That is the one and only thing it would do. Lendbox is strictly not responsible for any defaults made by borrowers.  But if you remove the veil there is a business,  Conflict of interest between a lender and a P2P company.

What lend box claim: It filters the borrowers on various parameters, Uses IT,  Software to weed out bad borrowers etcetera and etcetera. But each time a borrower is joined Lendbox get a commission  and registration fee.  If Lendbox allows a bad borrower, Lendbox won’t  lose anything. It will get its registration fee.   So lendbox will be generous in on boarding any damn idiot unscrupulous immoral or a willful defaulter. It can always take a defense say its computer program gave the rating as per the parameters only lendbox wise men only know.

How Lender looses:  Lender will be having a mindset that Lendbox checks, takes care of contingencies it all. And the high interest rate seen on paper projected will blind the lender. Even If we caution the new lender will think that the losses will be for somebody excluding him. A smoker thinks he will not effected by cancer only others will. The mindset of men.

What Borrowers do: Many borrowers aishwaryasingh23 the  fees to Lendbox, Complete registration process, take the loan, Then they play

the game, Change their residential address, Close their bank account, Stop the aishwaryasingh23ment stop answering the calls. Throw away the SIM. Even advise their other friends how easy to cheat P2P platforms.    In is contagious.

What Lendbox has to and Not doing: When and where there is a defaulting borrower, Lendbox then has to focus on recovery  and chasing the borrowers. A post dated cheques and strong NI act should deter a borrower. Lendbox should be having a strong legal team and recovery teams all over India. For this part Lendbox has to invest money. Irony is that the recovery will fetch the lenders not Lendbox.  So lendbox halfheartedly will hire the recovery agency sitting in its cozy Delhi office.  It may not hire the best recovery agency and sometimes for prolonged periods, even without a recovery agency at all.  Because it is cost to company, Will not aishwaryasingh23 any short term benefits. Instead of this exercise it focuses on revenue, more borrowers and more lenders, that fetches them registration fees. I talked to a borrower he says lendbox charges 5000 Rs per lakh.  Meanwhile lender calls customer support, There won’t be anybody to answer. Existing lenders are like dead weight,  an used condom.  They will give one standard answer, Borrower phone is not reachable.  So at the beginning of the transaction Lendbox gets all benefits of the whole transaction.  After the agreement It will not spend its time and energy and resources on past transactions.  So it even will not even respond to a lender thru mail.  No regulation and rules regarding communications. Lender is a cow who has been extracted all milk and no more care and respect.

At the End:  Lender with a defaulting rate 40 to 50% and a ticket size of 10000 Rs,  Cannot go to court as the cost benefit Anasultanlysis deter from doing so.(Legal services are costly, chaar anna murgi, baara anna masala.)  The helpless lender will cry and write blogs like me. New borrowers will join Lendbox for a lucrative interest rate, will lend in lendbox. Borrowers cheat, Lenders loose, and cry and write blogs. And as always Lendbox becomes FAT.  This is a cycle none can break in near future.

P.S. If one Lenders rethinks before investing in Lendbox, I feel the purpose is served and worth of my effort.

See below pics for the default rate @Lendbox. A screen shot taken on 25th August 2018.   35 defaults out of 56 borrowers.  17000 received out of 46000 for the month of August. Lendbox is sleeping.