Per Annum, the investment platform under Lendbox parent Transactree, is under scrutiny for promoting high-return pitches with limited risk disclosure despite RBI tightening peer-to-peer lending rules in 2024. The platform markets P2P products promising up to 14-15% returns and fractional real estate opportunities claiming 30-40% gains, raising regulatory concerns this week, according to inc42.com.
Investors and prospective customers told inc42.com that Per Annum’s sales representatives assured them of borrower spreads softening losses, effectively promising credit guarantees and assured returns. These claims violate RBI’s 2024 mandates that prohibit credit guarantees, assured returns, and products mimicking deposits. The platform’s offerings include “Estates,” a fractional real estate product, and “P2P Edge,” a lending product marketed to deliver up to 15% returns over six months.
The scrutiny comes amid Transactree’s deteriorating financials, with operating revenues dropping 35% year-on-year to ₹275 crore in FY25 and net profit falling to ₹4.8 crore alongside deeply negative operating cash flows. The RBI’s 2024 P2P lending regulations aim to protect investors by banning credit guarantees and misleading return promises, making Per Annum’s sales narrative particularly sensitive. This situation highlights ongoing challenges in India’s P2P lending sector as platforms navigate regulatory tightening.
Transactree’s financial stress and regulatory scrutiny of Per Annum’s high-return pitches underscore the pressure on P2P lending platforms to comply with RBI rules. The company’s FY25 financial results, disclosed recently, show significant revenue decline and minimal profit, emphasizing the impact of regulatory and market challenges on its business model.