Peer-to-Peer Lending in the Indian Context Definition, Types, Examples & Uses

Peer-to-Peer Lending in the Indian Context

Subject: Static GK (General Knowledge)

Book: Indian Money Knowledge

Online P2P lending platforms connect individual lenders and borrowers, offering competitive rates and a chance for higher returns compared to conventional bank deposits. However, RBI regulations cap investment amounts for lenders, and defaults pose a notable risk. Students curious about modern fintech can explore P2P lending, but they must carefully assess borrower credibility, platform reputations, and diversify investments to minimize losses. This model fosters financial inclusion while opening alternative credit lines for underbanked segments.