P2P lending is for those with a high risk appetite, say analysts

Limit lending amount and diversify among borrowers

Two prominent fintech players recently announced their entry into peer-to-peer (P2P) lending. Cred launched a P2P platform called Cred Mint in partnership with a Reserve Bank of India (RBI)-registered P2P non-banking financial company called LiquiLoans. BharatPe will carry out P2P lending via an app called 12% Club.
 
Higher returns
 
P2P platforms enable lenders to earn a higher rate of interest. Cred, for instance, is promising its lenders up to nine per cent return. “While Cred does not guarantee this return, our risk an­a­lysis shows it is highly probable members will make nine per cent return as the risk