Peer to Peer lending also known as P2P lending involves lending services to businesses and individuals through an online platform that matches lenders and borrowers. Some of the salient features of the P2P lending service is listed hereforth:
Low Ticket size loan : In comparison to the conventional banks, P2P lending offers lower sum as loan amount.
Smaller Tenure: Most of the P2P lending services come with lower loan term i.e loan amount together with interest has to be repaid in shorter span in comparison to loans extended by other financial institutions.
Borrowing eligibility: Eligibility of the borrower is judged basis his or her education, financial behavior, socio-economic status, future financial prospects etc.
Interest rate: P2P lending also known as crowd lending service offers loan at a comparably higher rate of interest.
The P2P lending platform is fast gaining momentum in the Indian financial services sector. And in case you have a low credit profile with poor credit score which cannot be improved overnight, you can certainly check on the P2P lending option for your credit requirements.
Major P2P lenders in India:
The P2P lending vertical in India majorly includes Lendbox, Faircent, i2ifunding, Rupaiya Exchange and LenDenClub among others.
As per a recent finding by Faircent.com, a leading P2P lending platform in India, over 60% of the market share on the P2P lending platform is held by youth aged less than 35 years. And they are making huge gross returns to the tune of more than 22% on an annual basis. Additionally owing to a substantial increase in timely repayment, lenders are reinvesting the earned amount and in turn are reaping better returns. Borrowers on the platform is also constituted largely by millennials