All about Peer to Peer(P2P) Lending!


Peer to peer lending is broadly an online platform where lenders meet the borrowers to match their requirements. The RBI has recently made the ceiling limit for a P2P investor to Rs 50 Lakh which have made investing in it more attractive. While these platforms are becoming gradually popular in our country, let us talk about all you should know about this apparently new concept.

Should you Borrow from P2P Platforms?

Well, most of the platforms having Apps these days and its one of the reason that it is very convenient to apply for a loan from them. Being the process almost paperless and fast people are gradually considering them more.

But one should always check what interest rate they are paying, as P2P platforms generally offer loans at interest rate higher than conventional bank loan. If you have a sudden fund requirement and it is for very short term, then you should always consider these platforms.

Should you Invest in P2P Platforms?

Investing in P2P loans is actually not very popular in our country though the concept in almost a decade older by now. The primary reason of that is these loans are not regulated by standard norms and its provided without any security. But if we go through the default percentage of various platforms, it only 5-10% of the loans.

As the interest rates are on the higher side (15- even 48% per year), investing here will be garnering a Money plant in my opinion. Because risk here is completely diversified within multiple number of borrower and it mitigates the risk.

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.

Albert Einstein
What are some popular and trusted P2P Lending platforms in India?

Even though the concept of P2P lending is not very old in India, there is already a dozen of big forms involved in this business. Faircent, Lenden Club, Lendbox and i2i funding are among the most trusted P2P platforms in India. One good thing is that you can even start investing with Rs 500 only in most of the platforms!


P2P lending platforms generally charge a small joining fee from investors, once you join, they all are very user friendly and they have customer support also. So, do explore by yourself and invest in them and stay one step ahead in your money making process.

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