The Road Ahead For P2P Lending In India

Feb 28, 2022

P2P lending is set to fill the gaps of credit demand in the country

The fintech sector has evolved over the previous decade from a small, nascent industry to a slew of behemoths, several of which have now become Unicorns. The sector’s exponential growth drew the attention of India’s Prime Minister, who declared the industry to be a revolutionary one.

To fulfil the customers’ needs, various fintech companies create innovative products daily. In a country with over one billion people, the credit demand is expanding in response to rising earnings and consumption. Currently, the total credit market size in the country stands at INR 156.9 lakh crore, with a growth of about 100 per cent from FY17 to FY21. One such sector actively catering to the rapidly growing credit demand is peer-to-peer (P2P) lending. P2P lending services serve a large segment of the population who would otherwise be unable to access credit through regular channels.

P2P lending, as a significant component of the larger fintech sector, is quickly becoming the most popular alternative investment option. With its unique provision of tech-enabled solutions spanning on-boarding, underwriting and disbursement, P2P lending platforms can meet such demands. With all factors encouraging the sector, P2P lending platforms that are borderless are here to stay.



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