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Some Interesting Facts about P2P Lending in India

Have you ever heard of peer-to-peer lending? Peer-to-peer lending, a new asset class that makes borrowing and lending easier.

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Have you ever heard of peer-to-peer lending? For people who are desperately looking for a loan for debt consolidation, education, buying a car or investing in a small business, there is something new and convenient in the market for you. Peer-to-peer lending, a new asset class that makes borrowing and lending easier.

How is it convenient?

The age-old idea of borrowing and lending is given a more convenient and new twist with this concept. Unlike banks, there is no middleman involved in the process and investors can directly connect with hand-picked borrowers.

Why peer-to-peer lending is popular?

There are several benefits of peer-to-peer lending-

• As a borrower, the primary benefit you can enjoy is debt consolidation. The interest rates offered are much lower than the other forms of financial tools.

• It is very easy to seek funding with the help of this platform. When you want to grow your business, it becomes very tough for you to avail a business loan. With the help of peer-to-peer loans, the lenders will find you for lending money.

• The interest rates are not only low but are not subject to change as in a credit card.

• As a lender, the biggest reason to love peer to peer lending is the return received. On an average the rate of return is almost 16% which is extremely high in comparison to any other form of interest.

• The actions taken to reduce the default by peer-to-peer websites are highly commendable. They screen the credit scores of the borrowers and prompt the lenders to lend only when everything seems perfect. As there is no collateral involved with the loans, the lending becomes risky. In spite of that the rate of default is almost as low as 2%.

• To further curb the risk, the lenders are not allowed to fund just one loan with their capital. They can spread it among several loans so that their risks get diversified.

Things to know before lending

Peer-to-peer lending India has come under the jurisdiction of RBI now. There are around 30 online P2P companies in India, of which only 8 have received a Certificate of Registration or CoR from the RBI to carry out the P2P lending.

According to some veterans, P2P is like investing in equities. A loan approval in a P2P approval may take from one to five days but it is always advisable to understand every aspect of lending before starting to invest in these platforms.

• Diversification is always the key to success. As a lender, the money should be spread among multiple borrowers. This practice helps in mitigating the risks.

• The profile of the borrowers should always be checked as the ROI on the investment would depend on them. Most of the P2P companies divide the borrowers into categories of very low risk, low risk, moderate risk, high risk and very high risk profiles.

• The defaulter rate should also be checked. It is the ratio of defaulters on a platform and is very important in helping to choose a company.

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With the change in lifestyle, personal loans have been much in demand with the change in lifestyle over the years. Personal loans are unsecured loans as it doesn’t require any collateral. It holds the potential to come to the rescue whenever there is an immediate need for funds.

It can significantly contribute to improving the credit score if managed smartly. A good credit score is needed to take any loan in the first place. However, it is not the only thing that personal loan providers consider to determine an individual’s credibility in the starting. There are a few lenders who grant unsecured loans to people if they successfully meet the criteria like Clix Capital.

The leading digital NBFC, Clix Capital, provides instant personal loans for the immediate need of funds as per the requirement and serve as a solution for managing travel expenses, wedding as well as expenses of a medical emergency, home renovation, education. It serves as the best option for all those who are stuck in some financial emergencies or crises and are left with no choice except for borrowing money. However, personal loan finance from Clix comes with a lot of benefits.

Here are some benefits you can expect while taking a personal loan from Clix Capital:

Eligibility criteria

The first thing that comes into consideration for many loan providers is the eligibility. If an individual is over the age of 25 years while applying and under 58 years at the end of the tenure is eligible for a personal loan from Clix. A salaried employee who is employed in the current company for at least six months and has a total professional experience of at least 12 months can easily avail of a loan from the NBFC.

Customised Repayment method

While analysing and evaluating personal loan applications, personal loan providers assess the repayment capacity of an individual. Therefore, it is essential to opt for a loan tenure that fits the capacity of repayment. This is where Clix Capital comes as a helping hand with their customised and flexible repayment method of 3-48 months. Moreover, the feature of a personal loan EMI calculator enables one to check different repayment plans available for the amount required. Clix Capital ensures timely approval that makes up for instant disbursal of funds, so one doesn’t have to wait to get the funds in times of need.

Contributes to a better credit score

Personal loans usually smaller amounts as compared to other loans. However, depending on the situation, it varies from person to person. With the flexible and customised installment loans from Clix, one can make the payments on time to establish a positive payment history which eventually helps to increase the credit or CIBIL score.

With Clix Capital, all the dreams can become a reality with an attractive personal loan interest rate that suits all the needs and style.

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