Context: As the banks grapple with risk aversion and savers see an erosion in the value of money, the P2P platform can be a win-win for both borrowers and lenders
Peer-to-Peer (P2P) lending: The P2P business model entails collection of money from individuals and lending to individuals as well as micro and small enterprises.
RBI’s draft on P2P lending: RBI issued first draft on P2P lending in 2016 with following characteristics:
Advantages of P2P:
Global experience:
Way Forward: India must try to open different channel of investment in light of limited space. Giving tax incentives and allowing individual investors, both domestic and foreign, in India P2P lending forum would certainly reap benefits as it did elsewhere.