Why the P2P lending segment is staging a strong comeback after a lull

Initiatives to make returns more attractive and spread risks in order to keep the default rate low for individual lenders have spurred interest in this segment once again

Two fintech unicorns -- BharatPe and Cred -- entered the peer-to-peer lending segment recently. While BharatPe promises an interest rate of up to 12% for both individual lenders and borrowers on its P2P platform, Cred has set a far lower interest rate of 9%. This has created renewed interest in the space, which has not seen any major funding activity in the past few years.

“P2P is a great opportunity that hasn’t really taken off all these years, primarily for the lack of great models to push it as well as lack of customer trust. The market is picking up