How to Spot a Trustworthy P2P Platform: 10 Due Diligence Questions to Ask

In India’s regulated fintech space, selecting a reliable peer-to-peer (P2P) lending platform is crucial for anyone looking to participate in lending opportunities. RBI-registered NBFC-P2P platforms act as intermediaries, facilitating connections between lenders and verified borrowers while ensuring escrow-based fund transfers. This educational guide outlines 10 key due diligence questions to ask, helping you evaluate platforms based on transparency, compliance, and borrower verification processes. By focusing on these, lenders can better understand repayment risks and prioritize diversified lending activity.

As of 2026, the RBI oversees around 25 active NBFC-P2P platforms, with cumulative lending exceeding ₹20,000 crore. However, outcomes always depend on borrower repayment behavior, so thorough checks promote portfolio-level stability.

Why Due Diligence Matters for P2P Lending

Platforms facilitate structured lending income through borrower EMIs, but not all operate with equal rigor. RBI guidelines mandate borrower KYC, exposure caps (₹50 lakh per lender across platforms), and monthly reporting, yet lenders must verify adherence to mitigate repayment risks. Asking targeted questions reveals a platform’s track record, grievance mechanisms, and risk management.

The 10 Essential Due Diligence Questions

Use these questions during platform onboarding or support interactions. Platforms with clear, data-backed answers demonstrate accountability, while evasive responses signal caution. Review public RBI lists and annual reports for context.

1. Is the Platform RBI-Registered as an NBFC-P2P?

Confirm registration on the RBI’s official NBFC-P2P list (updated monthly on rbi.org.in). Legitimate platforms display their certificate prominently and comply with escrow mandates for fund transfers. Non-registered entities pose legal risks.

2. What Borrower Verification Processes Are in Place?

LenDenClub verifies  KYC (Aadhaar, PAN), credit bureau checks (CIBIL scores), and income proofs.

3. How Transparent Are Repayment Performance Disclosures?

Request historical delinquency rates (e.g., 0-30, 30-90 days past due) and NPA provisions. RBI mandates dashboards showing portfolio-level metrics—reputable platforms report their delinquencies on average, emphasizing earnings from borrower repayments.

4. What Escrow and Fund Management Practices Follow RBI Guidelines?

Funds must flow to the lender → escrow → borrower, with no commingling. Query trustee bank details and audit reports; this setup minimizes misuse and ensures repayment servicing. For Repayments its borrower → escrow → lender bank account

5. Are There Caps on Lender Exposure and Diversification Tools?

RBI limits individual borrower exposure ( maximum ₹50,000 per lender) and total lender exposure (₹50 lakh outstanding). 

6. What Grievance Redressal Mechanism Exists?

RBI-approved policies should include timelines and escalation to the RBI Ombudsman. Check nodal officer contacts and resolution rates and timelines, as disclosed in the platform’s grievance policy.

7. How Does the Platform Handle Collections and Defaults?

Platforms manage recoveries but lenders bear repayment risk. Ask about recovery partners, post-due processes, and historical recovery rates, where available, can vary based on borrower profiles and collection processes.

8. What Are the Platform’s Financials and Growth Metrics?

Review incorporation date, AUM growth, and lender base expansion via annual reports. Established platforms (3+ years) show steady scaling without unrealistic spikes.

9. Does the Platform Facilitate Cross-Selling or Guarantees?

RBI prohibits guarantees, assured earnings, or non-loan products. Confirm no “capital protection” or auto-invest algorithms promising outcomes—earnings link solely to repayments.

10. How old and how long is the platform active?

    
    Check the platform’s years of operation, growth consistency, and track record through factsheets and RBI registration history. LenDenClub has been operating since 2015 with a user base of over 4 Crore. 

Steps to Verify Answers and Get Started

Contact support with these questions, review FAQs/terms, and monitor dashboards post-onboarding. Diversify across multiple borrowers for balanced exposure. Lenders should consider personal risk tolerance, as all lending carries repayment uncertainty.

FAQs: Spotting Trustworthy P2P Platforms

How do I check RBI registration?

Visit rbi.org.in > NBFC-P2P list; 

Do platforms guarantee repayments?

No, RBI bans this; earnings depend on borrower behavior.

What if I’m unhappy with responses?

First to raise it to the nodal officer of LenDenClub and if no resolution is provided then it can be raised to the ombudsman. These details are available on the website.

This guide equips you to make informed decisions on RBI-regulated platforms. Always prioritize education over haste in lending activities.