How Can You Earn Daily Passive Income? P2P Lending Explained! How is it beneficial for students?

Looking for a way to increase your net worth in a short period of time? Are stocks, mutual funds too complicated for you? Don't have the patience to ride through the ups and downs of the market? How can you invest with a very small amount and get over all these complications? Let's learn all in this article.


Before jumping on to details, let me explain what passive income means. Passive income is termed as the income generated from those areas where you aren't actively working for or where you haven't put in your considerable time or efforts. Your daily job is the source of your active income but the income from your rental property is your passive income. Some other forms of passive income include dividends, money generated from loans and similar others. The method of passive income that we are going to discuss here is called P2P lending.

Earn Daily Passive Income! How does P2P lending work? How can student generate daily income?

How does P2P lending work?

Lending money is not something new. You give a loan to a person in need of some money and when he returns it back to you, you get the interest amount which acts as a source of income. While this can generate a lot of capital for you but the thing is you need to put in a lot of initial efforts which includes:

  1. Having a lot of money

  2. Finding someone whom you can lend to

  3. Keeping a check that the one whom you have given the loan returns it back timely

And not everyone has time for it. Moreover, you cannot earn from it daily. This is where P2P lending comes in.


With P2P lending, you can easily find people whom you can lend and you don't need to have a huge capital to start with. You can even lend as small as ₹1000.


How can you lend money using the P2P model?

There are a lot of platforms through which you can start your P2P but the one I will discuss in this article is the one that I personally use as a source of my daily passive income. The platform is called 12% Club and it is an initiative of popular fintech company BharatPe. 12% Club allows individuals to lend money to businesses or merchants who are in need of it. For this, they have partnered with multiple NBFCs registered by the RBI.


And the most important fact, you can earn from it on a daily basis. Let's discuss more on that here.


How to use 12% Club for daily passive income?

To start earning from 12% Club, one needs to register themselves on this platform and this is absolutely free. Once registered, you need to do your KYC. Once your KYC is verified, the only thing you need to do is to deposit money in its wallet. This can be as small as ₹1000. Once done, 12% Club will distribute the amount among multiple borrowers so as to reduce the risk on your invested amount.


And as the name suggests, you can earn up to 12% of your investment in a year. The earnings are credited to your wallet each day and you can withdraw them any moment you want. I have been using it for some time now and have no complaints about it. If you are a student, this can be one of the best ways to generate income from your investments as the minimum amount required is as low as ₹1000. There are no more hidden charges or withdrawal fees that you might find with mutual funds or cryptos.


With this, you don't have to go through the ups and downs of the stock market, mutual funds or the crypto market. Moreover, this does not require any technical analysis or other efforts as the investment model is pretty simple.


To start earning from the 12% club, you can use the link mentioned below the download the app. Click here to download the 12% club on your phone. This is an affiliate link. This means if you use this link to download the app, the blog earns a very small amount which will go towards maintaining the blog and bringing you new content. This is not sponsored. I have mentioned it on the basis of my experience of using the platform.


With this, we have made it to the end of yet another article. I hope you have gained something new. Consider giving it a like and sharing it among your friends and family. It will motivate me to keep writing new articles for you. To get notified whenever I publish new articles, sign up to the NerdyTree by hitting the "log in" button at the top of the page.


Let me know if you have any doubts regarding P2P lending or the 12% Club, drop them in the comments.


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