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How Huge is the Scope of Peer-to-Peer Lending in India?

Peer-to-Peer Lending in India is a shift from traditional loaning process that happen with banks and financial institute. It is a modern-set money transacting procedure between lenders (individuals, entities) and borrowers. The P2P models aims at flourishing monetary returns for lenders, as well as meet economic requirements for the borrowers, in an easier and quicker way, funding within no-time.

Modern P2P Lending vs. Traditional Loaning Platform

Financing methods In India have long been grounded to private or government banks and other certified institutes. Other types of lending were restricted to thrift societies, chit funds, and random people without observing any legal or safety protocols to assure smooth, or fraud-less transaction activities.

But, with peer-to-peer lending online, such as that at, people who need to borrow a specific sum, can connect with lenders online, and get the money immediately. Similarly, lenders can deal with borrowers, judge their risk-profiles, lend at a determined interest rate, and get promised returns over a period.

Why is the P2P India Online System Booming?

The P2P online is gaining popularity in India because, the RBI (Reserve Bank of India) has consented to this approach, and laid out certain rules that have to be followed by the peers and the P2P platform, in extending credit support to its members.

Thus, peer-to-peer lending method is valid, ethical, and transparent process for money transactions in terms to lending or borrowing than one that occurs outside the P2P space. Research has proved that money lending market in India is dominated amidst communities, friends, and families.

A part of lending marketplace is also controlled by the private or other small lending institutes that engage in similar activities. But, peer-to-peer online is authentic, has wide presence and spread in India such as on, which is easier to keep a check and track on for all the lending and borrowing services.

What Rewards Does P2P Have for its Peers?

The possibility of peer-to-peer lending is huge for investors and lenders, or borrowers, who trust this platform for respective money dealings.

  • Unlike the equity and mutual fund sphere, there is no volatility involved. Though the P2P space has its own small setbacks, if a lender is smart to understand how this financing method works, he/she is in for gaining good returns without raging the cold waters.
  • The P2P lending marketplace is catering to a larger audience, offering cheap credit source, and a very lucrative investment option for peers, along with dynamic borrowing course for borrowers.

From micro finance sector, the P2P platform is becoming a major channel of a wholesome financing network in India. Needless to say, someday P2P will compete strongly with loan related initiatives processed at banks and other financial institutes.