P2P: Rules of the game


The peer-to-peer platform connects lenders directly with borrowers. This offers a high-return opportunity for lenders with a high-risk appetite. Here’s how it works
In October 2017, the Reserve Bank of India (RBI) issued master directions for peer-to-peer (P2P) lending and borrowing in India. P2P lending platforms that, for fees and charges, let lenders give loans directly to borrowers have been around in India for some years now. The rise of these loan facilitation intermediaries has been catalysed by increasing internet penetration, digital lending and fin-tech revolutions. But until recently, they were operating largely in a regulatory vacuum, leading to some undesirable practices by some platforms and rising scepticism among market-watchers.

COURTESY: The Hindu Business Line