P2P Lending in India: 5 Key Points to Know

Peer-to-peer (P2P) lending is individuals lending/borrowing from one another and is a very common but unregulated practice in India. In recent times there are a host of new online platforms that connect borrowers and individual lenders. These work as online marketplaces for loans and are regulated by the RBI. 

5 key points to know for loans via P2P platforms:

  1. Application for a loan can be made online by uploading relevant income and bank documents
  2. Loans are then listed on the marketplace after being approved by the platform. They are assigned a rating and interest rate. Rates can vary from 12% to 30% based on the borrower’s profile. 
  3. Lenders can choose which loans to fund. Borrowers will have to wait till a group of lenders approves funding their loan.
  4. The P2P platform collects a commission of around 2-4% from the borrower before disbursing the loan.
  5. The maximum amount that can be borrowed or lent across all P2P platforms is 10 lakhs as per RBI guidelines. Individual loan limits vary depending on the platform.

Below are some of the P2P lending platform in India:





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