Peer to peer lending


#1

Are peer to peer lending regulated now? How safe it is?


#2

Hi,

Yes. The Reserve Bank Of India (RBI) has recognised peer to peer lending platforms as NBFCs and have published guidelines to regulate the marketplace. As with everything, P2P platforms also have their fair share of pros and cons. If you’re an investor, P2P lending is another avenue through which you can diversify your investment portfolio. Over the short term you may get better returns as compared to FDs and even Mutual Funds. However, a major risk for investors in P2P lending is the risk of default by the borrower. If the borrower defaults, you may have to bear the entire risk.

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Cheers,
Team BB