WHAT IS P2P LENDING IN INDIA IN 2023 ? DEFINITION
In India, P2P lending in 2023 is by definition a funding solution that enables Indian individuals to obtain loans directly from other Indian individuals (Peer-to-peer), without involving Indian financial institution as the intermediary.
In India, P2P or Peer-to-peer lending consists of as financial technology that allows Indian people to lend or borrow money from one another without using the services of a bank, given that an Indian borrower seeks an alternative to Indian banks.
In India, the Peer to Peer loan is a new way to access lending services by using the P2P principles which is the disintermediation process of removing any intermediary from loan and financing transactions in the Indian subcontinent.
In India, P2P lending in 2023 is dedicated to lending only through peer-to-peer platforms without using the banks to borrow money, Indian P2P is covering now other type of services as well where Indian individual can exchange services without involving Indian intermediaries.
HOW DOES P2P LENDING IN INDIA WORK IN 2023?
In India, the P2P lending sector in 2023 works such a way that it is also open to those who could not get the loans for business purposes easily and who were refused loan by Indian banks, because of a poor credit history and bad credit score, peer-to-peer lending has a positive risk history and of being lower risk for lenders, finally in some Indian platforms, lenders have made losses so that some platforms lend selectively to creditworthy borrowers.
In India, peer-to-peer lending platforms bring individual borrowers and lenders together, ignoring traditional banks so that both, lender and borrower get a better rate: Indian lenders receive more interest than from a bank savings account and Indian borrowers pay less than on a classical loan obtained from an Indian bank.
INDIAN P2P LENDING PLATFORMS RULES
Indian P2P lending platforms have been allocated certain constraints as what is permitted and not:
WHAT IS INDIA P2P LENDING MARKET SIZE IN 2023 ?
India P2P loan market in 2023 is already the largest offline P2P lending market in the world as a majority of Indians relies on friends and relatives or private lenders for borrowing cash nowadays and traditional peer-to-peer lending even being offline currently is in fact the largest loan provider in the country with the bank loans only having 20% of the Indian financing market share.
The Indian P2P market size in 2023 ca. USD 7.8 Billion and is expected to grow to USD 11 Billion by 2025 against USD 450 Billion worldwide, and registered peer-to-peer companies at RBI (Indian financial regulator) are amounting to 15 in 2022.
India’s P2P market size aims on the long term to compensate the credit demand and supply gap in India is of USD 400 Billion according to World Bank sources.
P2P LENDING FOR WHOM IN INDIA ?
India P2P lending is dedicated to different types of borrowers, individuals and entrepreneurs depending on their specific situations:
RBI (RESERVE BANK OF INDIA) REGULATION OF THE INDIAN P2P LENDING MARKET 2023
The Indian regulator through the Reserve Bank of India (RBI) initiated meanwhile measures to regulate the exploding peer-to-peer lending business in the country, as a consequence, the regulator has now proposed to consider and register Indian P2P companies as non-banking financial companies or NBFCs.
Some new rules have transpired from the new policy and which could be adopted soon:
WHAT TYPE OF P2P SERVICES ARE EXISTING IN INDIA IN 2023?
Peer-to-peer services in India are in 2022 and 2023 becoming various and follow the success of P2P lending with the establishment of new creative types of Indian peer-to-peer platforms such as:
India-p2p.com has selected for you the best online P2P platform in India.
INDIA ONLINE P2P PLATFORMS