India is the second fastest growing economic hub in the world. Millennials today, as young as 21 years are focusing on living their lives to the fullest even if their means are limited. In order to meet these needs, people are looking out for money being available at their disposal almost instantly for which they are resorting to newer avenues of finance like Peer to Peer Lending in India.
In the recent years, Peer to Peer (P2P) lending platforms also known as Non-Banking Financial Companies (NBFC-P2P as per RBI directive 2017) are setting a new trend. With the advancements in digital technology, P2P lending is made hassle free and less tedious. The main advantage of P2P borrowing is that the loan processing is done through a complete online technology-based process.
RBI’s Motive of Credit Inclusion
Even Though the industry is at a nascent stage, P2P in India has started gaining momentum. However, the 2017 RBI’s guidelines have addressed some of the key concerns of the industry and cleared many unregulated practices.
Future scope of P2P
Above mentioned RBI regulations are expected to impact the P2P lending space as follows:
With RBI’s support, the P2P industry is ready to move to the next level of market adoption for lending money online. With all things going their side, P2P lending platforms are here to stay.