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Nov 13, 2019
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Why it may be the right time to invest in P2P Lending Platform?

Generally, a Peer to Peer (P2P) Lending platform can be described as an intermediary which connects borrowers to lenders who are willing to invest their surplus funds in loans. The process bypasses the traditional financial system and is similar to crowdfunding based models. The P2P Lending Platform, in turn, charges a small service fee for offering all its services.

The borrowers here are small businessmen and individuals who are in urgent need of funds or have failed to secure loans from traditional sources. The loans here are given for a period of 15 days to 3 years and are unsecured in nature.

The P2P Lending Platform is responsible for the background verification of all the borrowers based on various parameters and algorithms before approving them on the platform for funding.

Huge Opportunity

Currently, only a small portion of credits disbursed by banks and other financial institutes reaches small and medium-sized enterprises (SMEs) sector as most of the enterprises fail to meet the stringent loans requirement proposed by banks.

According to the Economic Survey 2017-18, only 17.4% of the total $366 billion bank credit went to SMEs. And, Fintech Trends India Report 2018 by PWC suggests that over 50 million MSMEs in India have an unmet demand for credit worth $198 billion.

P2P lending platform allows those borrowers to raise funds who fail to qualify for a loan with banks from due to poor or no credit score and lack of usable financial data. With the growth now being more focused on the rural economy and Tier 2 and Tier 3 cities, where banks have lower presence and borrowers have an inadequate profile for loan eligibility, P2P Lending Platforms will witness explosive growth.

Higher Returns

Investing in Peer to Peer Lending platforms helps lenders to generate a higher rate of returns on their surplus funds over a particular period. On average, an investor can get an interest income of over 30% per annum on their investments, while the returns quotient can reach as high as up to 100% if an investor chooses to reinvest the EMIs which he/she is getting.

A Simple Investment Tool

All other investment tools available in the market, whether stocks, bonds, or mutual funds, are pretty much complex to understand, and returns are hugely uncertain and sometimes negative. If you have invested, you need to do a periodical review and adjust the portfolio as per market scenarios.

On the other hand, P2P investments are hassle-free, and if you make the right offer to the right borrower, it will help you earn better returns without any worries of external factors.

Furthermore, the use of advanced technologies and automation in the P2P lending system have helped it to eliminate the human biases and deploy products at a larger scale with better efficiency. All the data is fed to the system on a real-time basis, which helps it to maintain transparency.


The peer-to-peer revolution has taken the world by surprise, and there exists a huge opportunity given the fact that a large part of the population and small business enterprises still can’t avail bank credit.

For borrowers, it is an easy and hassle-free method of getting access to affordable credit, and for lenders, it helps them to deploy their surplus funds and earn an attractive interest income. Further, it helps the investors to diversify their investment portfolio mix to realize their investment and financial goals more efficiently.

With the possible investment by established and big VCs in this sector, it will bring about much-needed investments and technology required to develop the P2P Investment ecosystem and fuel growth for all stakeholders.

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Nov 13, 2019
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33 has one of the highest return on investment in the industry
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