P2P lending is a system where individuals lend money directly to other individuals through a digital platform. It cuts out traditional banks and gives lenders higher returns.
Borrowers request a loan. Lenders choose how much they want to invest. The platform matches both sides, manages repayments, and handles documentation.
RBI currently allows lenders to invest up to a fixed overall limit across all P2P platforms. The exact cap is shown when you register.
In most cases, NRIs can’t invest due to RBI guidelines. Only Indian residents with valid KYC are typically allowed.
Interest earned is treated as taxable income and must be declared under “Income from Other Sources.”
Returns depend on the borrower’s risk profile, loan tenure, and rate offered. The platform shows expected returns before you invest.
Loan terms can start from a few months and go up depending on the platform’s rules.
Your dashboard shows repayments, outstanding amounts, expected returns, and borrower performance.
It uses a rule-based system that evaluates borrower risk, matches profiles, and allocates funds without manual preferences.
Borrowers are screened based on credit score, income, repayment history, bank statements, employment details, and existing loans.
Create an account, complete KYC, add funds, review borrower profiles, and start lending based on your risk appetite.
It’s regulated, but it still carries risk because borrowers may delay or default. Risk ratings, diversification, and credit checks help reduce that risk.
