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Credit risk and reward: P2P offers returns but needs cautious investments

Limit your allocation to 5-10% of your fixed-income portfolio and stick to highly-rated borrowers

digital lending, loans, digital loans

Photo: Shutterstock

Bindisha Sarang
Around Rs 3,000 crore was lent by peer-to-peer (P2P) lending platforms in 2021-22. According to IndustryARC, a research and consultancy firm, the Indian P2P lending market is expected to grow at a compounded annual rate of 21.6 per cent between 2021 and 2026.  

Millennials, in particular, are increasingly adopting these digital lending and borrowing platforms. According to the The Financially Independent Millennial report 2022 by CASHe, an artificial intelligence-driven financial wellness platform, about 12 per cent of millennials (the survey covered 20,000 people) had participated in peer-to-peer (P2P) lending.

Eliminating the intermediaries P2P platforms remove traditional intermediaries such as banks and non-banking

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First Published: Aug 26 2022 | 9:32 PM IST

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