Peer to peerlending in India is witnessing impress growth owing to increase in demand of instantpersonal loan online and alternate credit instruments. The RBI regulation and
digitization are also boosting the growth.
The p2plending platforms in india is expected to reach $50 market size. The
sector has witnessed an impressive growth over the past two years, and the
outlook will only get better as RBI has taken it under its wing.
The demand for
personal loans has gone up considerably. According to RBI, personal loans grew
19.4% in value in March 2016 as compared with 15% in the year ago period.
However, there isn’t enough supply of personal loan money lender to meet
the demand. It is no hidden fact that borrowers have to go through cumbersome
and time-consuming loan application process to avail instant loans from banks
and other financial institutions. Owing to the ease of peer to peer borrowing companies
in India, borrowers are now turning to online personal loan money lender.
As the number of
borrowers increase, there is more opportunity for the personal loan lenders to
build a better p2p lending sites india portfolio and earn higher returns.
Right now, lenders registered on peer to peer lending companies in
India like LenDenClub earn interest in the range of 12.5% to 35% on p2plending companies in india, which is higher than traditional investment
instruments.
RBI intervention is
another factor that is fuelling the growth of online peer to peer lending.
RBI has proposed giving Non Banking Financial Corporation (NBFC) to onlinelending platforms. It has also announced various other guidelines to
safeguard the interest of all stakeholders – lenders, borrowers and bestonline lending sites. Experts also predict that p2p lending investment
portals will be able to access credit bureau data, which will result in lesser
defaults on peer to peer sites lending investment.
The recent
demonetization drive has reduced bank deposit interest rate further, real
estate market is dwindling and the stock market is always uncertain. So,
investors are now keen on exploring P2P lending as an alternate credit instrument.
The emphasis of the
ruling government on digitization has also provided a further boost to the P2P
lending market in India. An increasing number of lenders and borrowers,
especially millennials, are moving towards cashless transactions. P2P lending
sites are using technology to enable cashless loans, quick processing of loans
and reduce communication barriers between lenders and borrowers.
All these developments indicate that peer to peer lending in India will
become more organized and transparent in a few years time. It holds tremendous
potential and will only strengthen its roots further in India.
Read More at : https://www.lendenclub.com/lending/
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