P2p online money lending in India

P2p online money lending in India is becoming the talk of the town now. The notion of peer to peer lending is a unique one. The platform matches borrowers with lenders who are looking for loans. These loans can be taken for various reasons. Some of them times when a personal loan can be availed are as follows:

1.          Education loan
   
2.          Auto vehicle loan
   
3.          Healthcare loan
   
4.          Consumer credit loan
   
5.          Pilgrimage loan
   
6.          Vacation loan
   
7.          Business loan
   

This has given plenty of options to the borrowers to apply loan for. The advantages for borrowers are very much there. It is extremely easy to fill out the application forms for borrowers. The evaluation of the documents in p2p is very quick as compared to the traditional banks. The documents which are uploaded by the borrower are then analysed and then accordingly these loans are then categorized as low, medium, high risk loans. The loans are then put to auction and this is the time when the lender can see your profile and fund you accordingly. This entire process takes very less time than that of the banks. There is quicker disbursement of loans to borrowers and the interest rates are almost same as banks. There might be times when the interest rate for the borrowers is on the higher side, that all depends on the risk category in which the borrower lies.

The same goes for the investors where in they can register very easily and can earn interest rates up to 30% per annum. It is a boon for investors in peer to peer loans as the rate of returns when compared to banks is extremely high. They enjoy the benefit of their returns in the form of monthly EMI’s.

The peer to peer industry has been recently regularized by the Reserve Bank of India. This has helped the industry so much in standardizing the processes and transparency.  The main element which one needs to be assured is that while investing the investor should know where his money is being invested or on whom the money is getting invested. This transparency is well assured in this industry now.

Online money lenders in India are now on the increase and there are many companies in line who are seeking the prestigious approval of the Reserve Bank of India and want to enter this new market. The scope of this industry is vast as it is estimated that by the year 2022 the peer to peer lending industry will be worth USD 4-5 billion dollars. 

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Created on Nov 15th 2018 12:17. Viewed 397 times.

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