Peer to Peer lending in India

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Peer to Peer Lending in India
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Peer-to-peer (P2P) lending is a method of debt
financing that enables individuals to borrow and
lend money without the use of traditional Banking
system. Usually, a person who is looking to
invest (Lender) his/her money lends it among
borrowers looking for a short term credit. This
is where Peer to Peer Lending platforms act as a
platform for investment.
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• 3 important factors which make P2P lending
  different from other investment options
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• Compounding Interest through monthly cash flow-
  P2P lending is an instrument which fetches
  monthly cash flows with interest payments. This
  interest earned can be reinvested to earn
  compounding interest.
• Solid returns- Sustained high returns on
  investment make P2P lending a sought-after
  investment option for fixed income investors.
• No volatility - Traditional instruments such as
  equity, forex, commodity etc. have high
  volatility inherent to them, resulting in
  notional or actual losses. P2P lending offers
  zero volatility with expected high returns.

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• RBIs guidelines have addressed some of the key
  concerns of the industry and cleared many
  unregulated practices. RBI regulations are as
  follow
• P2P Platform will only serve as mediators for
  matching and originating loan deals between
  lenders and borrowers.
• Lenders can lend a maximum of INR 10,00,000
  across P2P lending platforms
• All P2P must ensure confidentiality of customer
  data and offer complete transparency in its
  operations. 
• Need to submit regular financial reports, loan
  arrangement deals, a summary of complaints filed
  by borrowers or lenders with RBI.

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Growing demand and improved technology with easy
access to mobile gave boost to Peer to Peer
Lending platforms in India. Average returns on
LenDenClub are around 27.1. Its easy to invest
with LenDenClub, you just have to register as a
lender by providing basic KYC information. Rs.500
is the one time registration fees. One can start
investment with as low as Rs.500.
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Thank You