Online Money lending in India - Paisa Dukan

by Monica Jain P2P Online Money Lending India

Money lenders in Mumbai are on the rise as the peer-to-peer- lending industry is taking a good shape after its recognition from the central bank of the country which is the Reserve Bank of India. This industry is still relatively new if we compare it with other western countries as well as with the countries which are in the east. The trend started in the year 2005 when United Kingdom was the first country to introduce peer to peer lending in the world. That was more than two decades ago. This was followed by USA, Australia, China, etc.

Peer-to-peer lending industry matches the borrowers and investors through their platform. There are two way benefits for using this platform. The borrower can seek quick personal loans and for the investor, it is the rate of returns which is extremely higher than that of any traditional financial institution that is the banks. The rate of return ranges anywhere from 12% to 30% in this industry. Be it online money lenders in India, or be it online money lending in India this concept is expected to grow several folds as the banks have started reducing the rate of returns to the borrowers due to non-performing assets. This industry is slated to be at USD 4 billion to USD 5 billion.

The idea is simple; the people who have not been able to secure loans from banks can seek loans from peer to peer lending companies which often charge high interest rates for it. This is justifiable as the loans are being processed to those individuals whose loans applications have been rejected from the bank.