Peer to Peer (P2P) lending in India
What is peer to peer lending As per Reserve Bank of India’s definition: Peer to peer lending (P2P) is a form of crowd-funding used to raise loans which are paid back with interest. It can be defined as the use of an online platform that matches peer lenders with borrowers in order to provide unsecured loans. P2P lending is predominantly an online business in which individual and institutional investors provide funding to people seeking loans. Lenders invest in qualified borrowers who are looking for a loan and the peer lending (P2P) platform facilitates this match-making. Finzy was the first peer to peer lending company in India to have applied for the P2P NBFC license. The P2P Lending Value Proposition The P2P platform helps provide a new asset class to lenders that enables them to get higher returns compared to other asset classes. They also stand to earn regular monthly returns from their investments, in form of EMIs that the borrowers repay. In addition to the steady cash flows