Whenever you are in need of money, a bank is one of the first options you may think of. But getting a loan from a bank isn’t that easy as it usually involves a strict application process and paperwork. Also, you usually require a good CIBIL score. Borrowing from friends or family is another option but not everyone feels comfortable asking people they know for money. Peer-to-peer (P2P) lending is a modern way to borrow and lend money. Through P2P platforms, borrowers and lenders can connect online even if they do not know each other personally. 

In India, all the P2P lending platforms are regulated by the Reserve Bank of India. There are several P2P lending platforms available in country. Each may offer different features, so you might feel confused which one is right for your needs. In this blog, we will discuss 10 P2P lending platforms in India and look at their key features and how they work to help you choose the best P2P lending platform.

What is P2P Lending?

P2P full form is Peer-to-peer. It is a term used to describe a service that connects two individuals directly. P2P lending, in particular, is a term used to describe a financial method that lets individuals borrow and lend money directly to each other through an online platform (known as P2P lending platform).

Why Do Individuals Opt for P2P Lending?

Here are a few reasons why individuals opt for P2P lending:

  • There is less paperwork for borrowers.
  • It can provide better returns for investors a.k.a lenders.
  • It is generally a quick and easy online process compared to traditional bank loans, which may require bank visits.
  • When banks do not approve a loan, individuals may consider P2P lending as another borrowing option.

List of Top 10 P2P Lending Platforms in India

Here is a list of the top 10 P2P lending companies in India, according to the author. All the companies in the list are RBI approved P2P lending companies. :

1. i2i Funding

i2i Funding is one of the best P2P lending platforms in India. It is operated by RNVP Technology Pvt. Ltd., which is registered as a Non-Banking Financial Company – Peer to Peer Lending Platform (NBFC-P2P) with the central bank. i2i P2P platform was established in 2015. It connects verified borrowers with individual lenders and offers an alternative to traditional financial institutions for borrowing as well as investing. The platform allows the borrowers to secure unsecured loans. The loan amount ranges from Rs. 1,000 to Rs. 5,00,000 and comes with repayment tenures between 3 to 12 months. 

Based on the credit profile of the borrower, the interest rates range is 12-36% annually. The P2P loans offered by the platform are collateral free. This means that they are accessible to individuals having low or no CIBIL score. By registering on i2i funding platform, the lenders can earn high returns. The more verified borrowers they lend to, the more they can earn. Also, by lending to multiple borrowers, they can diversify their investment and mitigate risks.

2. LendBox

Lendbox is an Indian peer-to-peer (P2P) lending platform. It is owned by Transactree Technologies Private Limited, which operates as a NBFC-P2P licensed by the Reserve Bank of India. It was founded in November 2015 and is headquartered in New Delhi. Lendbox connects creditworthy borrowers with individual lenders. It facilitates loans and investments directly between them without the requirement of any traditional financial intermediaries. Lendbox provides individuals the opportunity to lend their money to verified borrowers. It allows them to earn returns that exceed those of average fixed-income investments. 

Borrowers can obtain unsecured personal loans through a fairly simple as well as transparent process. The platform employs advanced risk analysis, which incorporates thousands of data points like salary, spending trends, educational qualifications and online purchasing behavior to create comprehensive credit profiles for borrowers. Through Lendbox platform, the lenders get to mitigate risk by diversifying their investments across multiple borrowers rather than a single borrower. Fixed investment options offer annual returns of up to 13.99% while flexible options provide returns of up to 12% per annum. 

3. Cashkumar

Cashkumar is an RBI-licensed Non-Banking Financial Company headquartered in Bengaluru, Karnataka. It has specialization in P2P lending in India. It operates as an online marketplace that brings together individual borrowers and individual lenders. The company’s P2P lending platform facilitates short term personal loans. It offers unsecured personal loans to the borrowers. The loan amount ranges from Rs. 20,000 to Rs. 1.5 lakhs. The repayment tenure for loan is between 3 to 12 months. The platform primarily targets salaried professionals across 30 cities in India, including metropolitan and Tier 1 cities. 

Loans availed by borrowers can be utilized for various purposes such as medical emergencies, marriage expenses, travel, home renovations and debt consolidation. For lenders, the platform provides opportunities to invest in vetted borrowers and earn returns through monthly EMIs. Investments start at Rs. 5,000. They offer high liquidity with tenures ranging from 7 to 28 days. The average annual return on investment is approximately 12%. 

4. Finzy

Finzy, based in Bengaluru, India, is among the best P2P platforms in our list. Founded in 2016, Finzy operates under the legal name Bridge Fintech Solutions Private Limited. It connects borrowers seeking personal loans with investors interested in a new asset class that offers risk optimized returns. Registered with the central bank as an NBFC-P2P, Finzy provides quick loans to borrowers at competitive interest rates starting from 7.99%. 

The P2P loans offered by the platform generally do not require collateral or impose prepayment penalties. Investors on this platform benefit from monthly returns. They get to enjoy flexible tenures ranging from 12 to 36 months. The platform employs proprietary credit assessment algorithms so as to ensure secure lending by carefully curating borrowers on the basis of their creditworthiness.

5. IndiaP2P

IndiaP2P is one of the top 10 Peer-to-Peer lending platforms in India. It is headquartered in Mumbai – the financial capital of India. The platform serves as an intermediary that connects borrowers in need of loans with investors looking to lend money. IndiaP2P is regulated by the central bank as a Non-Banking Financial Company – Peer-to-Peer Lending. 

IndiaP2P provides investors with the opportunity to earn higher returns compared to traditional fixed deposits or savings accounts. The interest rates range from 12% to 36% per annum. Investors receive monthly interest payments from borrowers. This creates a steady stream of passive income for them. Being certified by RBI ensures that this platform adheres to required guidelines and offers security and trust for investors. 

6. Faircent

Another leading P2P lender on our list is Faircent, the oldest and first P2P lending platform in India, established in 2013. In 2018, it became the first company to receive an NBFC-P2P license from the RBI. Faircent connects individuals who need loans with those who want to invest their spare money. It eliminates the need for traditional banks. This approach helps lower costs and improve interest rates. 

The platform conducts strict KYC and background checks on all its members so as to ensure a secure environment. Additionally, it uses third party escrow accounts for safe money transfers. For investors, Faircent simplifies things by helping to collect payments and following up on any delayed loans. It also manages online loan agreements and related paperwork.

7. RangDe

RangDe is one of the top platforms when it comes to P2P lending. It is a peer-to-peer online micro-lending platform established in 2008. Together, Ramakrishna NK and Smita Ram co-founded RangDe. RangDe stands out from typical P2P lending platforms by connecting everyday social investors with low income rural entrepreneurs, farmers, artisans and students who do not have access to formal banking credit. Individuals can start investing on this platform with as little as Rs. 500. 

The funds get directed to unbanked or underbanked borrowers and help them build/sustain their livelihoods. Investors receive modest returns. They get interest rates of up to approx. 8% per annum. At the same time, they also get to make a contribution to social impact. Borrowers are required to repay their loans as per their structured schedules. 

8. Mobikwik Extra

MobiKwik Xtra is a peer-to-peer (P2P) lending investment product offered by the Indian fintech platform MobiKwik in partnership with Lendbox – an RBI-regulated NBFC. This product allows users to earn high returns of up to 14% per annum by lending money directly to creditworthy borrowers. It aims to provide an alternative to traditional fixed deposits and other low return financial instruments by offering higher interest rates and greater flexibility.

Investors can earn up to 14% annual interest depending on duration of their investment. Investments can start at just Rs. 1,000. Therefore, it is accessible to a broad range of users. Interest gets credited on a daily basis. This feature ensures consistent returns. The platform offers a fully automated investment experience as it requires no manual intervention for investing or withdrawals. 

9. Rupee Circle

RupeeCircle is a fintech company based in New Delhi, India. It specializes in Peer-to-Peer lending. Since its establishment in 2016, it has operated as a platform that directly connects creditworthy borrowers with individual investors who want attractive returns on their investments. The company aims to promote financial inclusion. It does so by providing affordable loans to underserved and unbanked individuals. At the same time, it also offers investors risk adjusted returns through credit risk management and data analytics.

Rupee Circle facilitates a marketplace where borrowers list their loan requirements and then the investors fund these loans directly. The platform bypasses traditional banking intermediaries. RupeeCircle is registered as an NBFC-P2P with the Reserve Bank of India. The registration allows it to ensure compliance with regulatory standards. It offers various loan types, including personal loans, business loans and education loans to name a few. These loans come with flexible repayment options.

10. LenDen Club

LenDenClub is a peer-to-peer lending platform. It is based in Mumbai, India. The platform was founded in the year 2015 by two persons, namely, Bhavin Patel and Dipesh Karki. The platform operates under Innofin Solutions and is registered as a Non-Banking Financial Company with the Reserve Bank of India. The platform connects individual lenders with borrowers who want short term personal loans. It offers an alternative financing model that is quite different from traditional banking systems.

LenDenClub allows lenders to earn high annual returns of 10-12% by investing in short term loans that are distributed among multiple borrowers through AI algorithm. Each borrower is thoroughly assessed on basis of over 200 parameters including both financial and social factors to ensure their reliability. The platform offers various investment plans, such as the Fixed Maturity P2P Plan. This plan enables lenders to invest for fixed durations ranging from 1 to 5 years. 

Conclusion

Whether you are an individual who needs money (borrower) or an individual who wants to earn interest (lender), P2P loan apps can be quite useful. The entire process of P2P lending is conducted online without the involvement of banks. However, like all financial products, both borrowers and lenders must understand all the associated risks and carefully read terms of agreement. If you’re considering P2P lending, make sure you use a platform that is registered with the RBI for safety and reliability. All the P2P lending platforms discussed in this blog post are registered with the central bank, and are genuine. 

Disclaimer:- The information presented in this article about top 10 P2P lending platforms in India is based on research and publicly available data. While we aim to provide accurate and reliable information, please be aware that financial trends and platform details may change over time. Our readers are, therefore, encouraged to conduct their own research and due diligence before utilizing any of P2P lending platforms mentioned in this article.