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

Limit lending amount and diversify among borrowers

fintech, digital lending, loans, payments, online
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P2P platforms enable lenders to earn a higher rate of interest.

Sanjay Kumar Singh
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

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First Published: Aug 31 2021 | 6:01 AM IST

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