P2P Lending

What is P2P Lending?

• Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. 
• The development of financial technologies by integrating banking processes with information technology has enabled the creation of financial products & services that can be delivered to consumers at scale, and at a fraction of the cost incurred by conventional banks and NBFCs. 
• Since P2P lending companies operate online, they can run with lower overheads and provide the service more cheaply than traditional financial institutions. 
• As a result, lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates.