A new report indicates that UPI has become the dominant payment method for lenders, accounting for over 90% of transactions. The report also highlights trends in investment amounts, diversification strategies, and geographic participation in peer-to-peer lending.
Bad loans in the peer-to-peer (P2P) lending industry more than doubled in financial year 2024 (FY24) to Rs 1,163 crore from Rs 472.1 crore in FY23, said a financial services company on Monday. Non-performing assets (NPAs), as such loans are officially called, were a modest Rs 14.7 crore at the end of FY19 when P2P lending was in its nascent stage, according to Capitalmind Financial Services that accessed data from the Reserve Bank of India (RBI) through a right to information application.
Instead of being guided only by returns, investors should also factor in the risks of lending on these platforms.
Lending on peer-to-peer platforms is fraught with higher risks but investors can earn as much as 12% to 36%.
These institutes, while expensive, are a viable alternative to studying abroad.
If borrowers don't have access to a bank's credit facility, it could make sense to use peer-to-peer systems.
