Things you need to know about the P2P space in India

In the last few years, this world has witnessed many innovations in the field of finance. One of which is Peer-to-Peer Lending. It all started in UK when a company named ZOPA started peer to peer lending companies market place. Within no time, this lucrative idea was adopted by many in USA and countries around. The trend got spread rapidly across many nations, and soon India also became a part of this idea.

peer topeer lending india, commonly called as p2p lending investment, allows individuals to online lending platforms or borrow  money website to & from other verified individuals without any additional assistance from financial intermediary. p2p lending companies in india is a boon to people who may not be eligible to get loans from banks/non-banking financial companies (NBFCs). It lets customers take the position of lenders and earn interest. However, it comes with the same risk as bank loans.

However, the Reserve Bank of India (RBI) has come out with a discussion paper to regulate the fast-growing crowd-funding and best p2p lending sites forinvestors. Now that this space is gaining momentum and growing massively in India, the central bank finds it important to regulate the space.

RBI’s discussion paper signifies that the platforms should adopt a company structure that can then be regulated by the central bank and it can be treated as an intermediary NBFC. Currently, P2P platforms are run by individuals, proprietorship, partnership or limited liability partnerships — areas outside RBI’s jurisdiction. The discussion paper also sought to curtail the freedom of the peer to peer lending platforms companies significantly and said funds raised through the platforms should go directly from the lender’s bank account to the borrower’s.

After all these discussions, Peer to peer lending in India is witnessing impress growth owing to increase in demand of online loans and alternate credit instruments. The RBI regulation and digitization are also boosting the growth.

Though this idea is a little risky for a country like India, the power of advanced technology empowered best p2p lending india and got them many investors and lenders, making it one of the growing segments in India. If researches are to be believed, India can be one of the biggest offline contributions in peer to peer sites. Because, even today Indians rely on their families, friends and money lenders during cash crunch or financial requirements. Another study shows that the demand for p2plenders is about to increase soon as India will have more than billion internet users with each person getting access to online lending sites. Out of all this, did you know that peer to peer personal loans in India is expected to become Rs30,000 crore market by 2020? All these studies, researches, developments show that there’s still time for p2p lending companies in indiato become more organized and transparent. It holds tremendous potential and opportunities, and will only strengthen its roots further in India.

Read More at: https://www.lendenclub.com/