what is peer to peer lending in india
Peer-to-peer lending Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Since peer-to-peer lending companies offering these services generally operate online, they can run with lower overhead and provide the service more cheaply than traditional financial institutions.[citation needed] As a result, lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates,[1][2][3] even after the P2P lending company has taken a fee for providing the match-making platform and credit checking the borrower.[4][5][6][7] There is the risk of the borrower defaulting on the loans taken out from peer-lending websites.
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