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Economy bridge investment through P2P lending platform

Hello, all good people! Welcome again to a new chapter of your financial knowledge. I hope these blogs are increasing your financial knowledge and making your money work for you. So, now coming to the point, in the previous blog, I wrote about investing money by lending it to someone and shared various merits, demerits, and risks involved. Today, we will talk about investing money in peer-to-peer websites, also known as peer-to-peer money lending platforms


risk in money lending

MONEY LENDERS MEET WITH BORROWERS OR BUSINESSES IN NEED OF MONEY ON A PLATFORM CALLED PEER TO PEER MONEY LENDING. For better understanding, here is a picture explanation of this system below.

Most of these platforms are online, so in an online peer-to-peer lending platform, the lenders can choose the expected interest rate and time to get their money back, and they can also choose the need, interest rate, tenure, etc. The system matches the best lender to the borrower and the borrower to the lender. As an investor, you get a higher interest rate compared to banks because this is a direct deal between the lender and borrower. Here, peer-to-peer (P2P) lending websites exist as a space for fair deals. In 2005, the first peer-to-peer lending platform, ZOPA, was registered in the United States. It has been quite successful and profitable up to this point, and laws will be enacted to establish a P2P platform and to make the system fair and transparent to lenders and borrowers. In India, p2p lending platforms are regulated by NBFCs (non banking financial corporations), which are part of the RBI (Reserve Bank of India).


After Zopa, many lending platforms came into existence. So there is a strong need for any regulating authority like FDI in the USA, RBI in India etc. because at present, p2p lending platforms are not able to create a big market in the economy to meet their needs. So we can say that this market is still in its infancy.


If you want to invest your money through lending platforms, then first you have to create an account on this platform. This will include contact number, name, address ,proof of income, government Unique Identification document like Aadhar in India ,income tax number ,profile pic, Gmail ID etc. Then your profile will be created after verification via OTP . Some websites also take a registration charge, which varies from $5 to 200 dollars according to websites and locations. After your successful registration, various options are available on various websites to determine your financial goals, like rate of interest ,amount of money, time ,amount of preferred installment etc. Then the website will show your profile to people who need money and borrowers can put requests to you and you will be notified whenever someone requests money from you just like Facebook friend request system. You can look at borrowers' profile, income details, income proof, history of previous loans, CIBIL score etc, Then, after successful verification, you can lend money to the person. After giving loan the borrower pays money in installment and lender will receive money as soon as the borrower pays money to the payment panel of the platform. The whole process of those lending websites is fully fraud-proof on account of transactions. As we are transferring money to the platform not to the borrower, there are also many charges which these peer-to-peer platforms take if the borrower delays the payment. There are also many advanced options nowadays, like paying a small amount and carrying forward your installment. In many countries, the government also give permission to affect CIBIL score or credit score as it gives more transparency and control to system.


Till date, p2p platforms had grown slowly as expected because the idea behind this lending platform is great: to connect the person who needs money with the person who have extra money. P2P is a fantastic site for both investors and borrowers, but the companies are unable to create a significant market space in the economy and loan business due to a lack of marketability, advertisement, reliance, financial awareness, literacy, and the ruling body's lack of interest in the growth of their market. The future of P2P companies seems bright, as banks have also started taking an interest in them and investors are investing some money in it. In the future, the use of this website is expected to increase due to an increased literacy rate and its increased marketability.

If the government and banks take an interest in it then massive growth can happen in this industry full of opportunities.


1) There is no entity between the lender and the borrower.

2) The rate of interest is good as comparing two bank deposits.

3) The money is almost risk-free.

4) The tenure of the investment is as long as you wish.

5) The transactions are fully transparent on the sides of the lender and borrower and fraudless.

6) Here platforms help in recovery if borrower fails to pay an installment and defaults on the loan or is not able to pay any installment at all.


1) As our team researches the terms and conditions of these companies, Says that the website is just a platform to match lenders with buyers; we do not guarantee your money. If the borrower does not pay your money, this is the worst part of these platforms if they are not working on the person's credit score, but these platforms help legally in the recovery of money; they have a special department also.
2) All the P2P lending platforms are not trustworthy, and you should verify their income tax and registration details on government records.


Peer-to-peer (P2P) money lending platforms are good for investment with a medium-to-high level of risk, providing returns of about 12% to 25% per annum. However, before investing in such platforms, certain measures should be taken, and all terms and conditions should be read and understood carefully. A trustworthy platform should also be chosen to minimize the risk involved.


  1. The loans are normally unsecured and not protected by the government and insurance companies, so your investment may be in danger if the borrower defaults.
  2. ZOPA was the first peer-to-peer lending company established in 2005.
  3. The P2P lending industry has been regulated by financial conduct authorities of the country since 2014.
  4. PaisaDukan was the first P2P lending company to receive a certificate of registration from the Reserve Bank of India.
  5. There are almost 30 P2P lending platform companies licensed by the RBI in India.

  • I hope you liked amd understood this blog. Comment down or mail at if you have any query, suggestion or suggested blog topic.


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