What are P2P lending Apps?

What is P2P lending?

Peer to Peer lending or P2P lending allows individuals to get personal loans from other individuals, with the help of technology.

Individuals who don’t have access to the traditional banking system or who belong to the unorganised sector and have no income records can get a loan here.

What are P2P lending apps?

The mobile applications that offer the Peer to Peer Lending facility are called P2P lending apps. Some of the popular P2P lending apps are Faircent, Lendbox and OMLP2P.

P2P lending organisations are regulated by the Reserve Bank of India (RBI).

These apps calculate your credit score based on your type of work, income pattern, reason for taking the loan, lifestyle, dependants and more such profile checks.

What are the benefits of loans through P2P lending apps?

Quicker loan processing compared to banks or NBFCs
Lesser documentation processes compared to banks and NBFCs
Can get a loan even with poor CIBIL score
Can get a loan even without an income proof
Can get personal loan from multiple lenders, on flexible terms
Good for borrowers who have no other formal alternative to get a loan

What are the drawbacks of loans through P2P lending apps?

High interest rates
Loans offered might be outside your capacity to repay
Might fall into a debt trap
High to Very High Processing fees
More hidden charges, apart from interest rate

To track your progress

What are P2P lending Apps?

Find out what are the things that need to be taken care of under P2P lending apps!