Peer To Peer Lending In India – Better Than Traditional Investment Options

Peer to peer lending is going to revolutionize the lending platform of India in a couple of years. This platform promises immense return in a very short period. It mutually benefits the lenders and borrowers with healthy returns by eliminating any middlemen in between.

A very informative article on this topic made me think to invest in such a platform. Already this type of an investment option is doing wonders in countries like United States and soon it is going to hit India.

The article which I read gives a very wonderful overview and meaning about peer to peer lending in India. Trust me, I had no clue about it before I read this article.

The following points that needs to be kept in mind about peer to peer lending are-

1] It is an online marketplace for lenders and borrowers 
2] The benefit of using an online platform is that it makes P2P lending easier to afford than borrowing money through traditional financial institutions. 
3] RBI will soon regulate peer to peer lending in India.

The Face of Peer to Peer Lending in India

Peer to peer lending can be identified as a disruptive technology; something people are not sure about. A good example of a disruptive technology is the Internet. in the beginning, Internet was mostly a source of information for academic people or researchers. However, it soon became a foundation of technological advancements as we know them today. the thing to understand here is that it can take some time to see the results and benefits of a disruptive technology.

Many people believe that the current decade is all about financial technology. We have seen innovations like virtual currency in the financial industry. Virtual currency a.ka. Bitcoin is taken as a revolution in the financial sector and has already sunk its roots in the Indian market. Therefore, an innovation like P2P lending should not come as a surprise to people interested in Indian financial market.

P2P Popularity in India

Peer to peer lending began from the Western markets but India was not far behind. The banking sector in India is only able to provide credit to 15% of the population which seems quite a small figure given that India is the largest democracy in the world. However, analysts believe that India is the largest P2P market. Due to the fact that many P2P platforms in India don’t make their books public, it is difficult to calculate the amount of lending through them. However, there are over 30 start-ups in India which proves that P2P lending is gradually becoming popular. Some of these companies provide individual loans but others mix individual and business loans.

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