Peer To Peer Lending (P2P)

Peer-to-Peer (P2P) Lending is providing a marketplace for credible borrowers and investors (lenders).  This involves   investment of lender’s funds directly in borrower profiles (without the involvement of banks) through RBI monitored mechanisms. P2P lending platforms function completely online; hence lenders can earn a higher rate of interest on their investments.

How Does Peer-to-Peer Lending Work?

• P2P Platforms connects investors looking for lucrative investment options with borrowers looking for short term loans.
•  Stringent Credit verification which includes fraud checks, credit bureau checks, and income document checks is undertaken for every borrower listed on the platform.
•  When an investor adds funds to the platform, his/her investment is diversified across various
  borrower profiles.
• According to RBI regulations, all transactions happen through an escrow account managed by a bank promoted trustee without the platform’s direct involvement in them.