Peer to Peer Lending in India
Peer to Peer lending in India or P2P lending in India is a new technology enabled mechanism that formalizes the entire process of private finance and lending.
What is Peer to Peer Lending?
Peer to Peer Lending in India is a concept which formalizes non-institutional lending between individuals. It is a platform for exchange between people who have money and people who need money in the form of a loan. People with excess funds can now extend a loan to borrowers anywhere across the country and earn returns on their funds in the form of interest.
This concept helps borrowers in need of money connect with lenders from across India to crowdfund their loans. The returns are attractive enough for lenders to invest small amounts of money across multiple borrowers. Borrower details are thoroughly checked by the P2P lending platform and a credit analysis presented to the lenders. P2P lending through online platforms started off as an idea in the US a decade back and is now gaining popularity in India.
Peer to Peer Lending aims to formalize this route by turning it into a valid investment option for any person with spare funds. It gives borrowers a way to fund their requirement for personal loans or business loans by opening a large P2P Lender group not confined just to their friends or peer group. Online peer to peer lending is a great alternative, if you have spare funds, to earn more than traditional investment options like Fixed Deposits, Mutual Funds etc with a little more risk.
P2P lending in India can occur in various forms including payday loan, quick loan and short-term loan. Any person with validated credentials can become a loan giver or loan taker. These form of loans are unsecured in nature and can be taken or given as a personal loan or a business loan. The P2P Lenders can be an individual and private finance provider who can fill details and become registered P2P Lenders on the platform. All loans attract a pre-agreed rate of interest between the borrower and P2P Lender. Cashkumar does not recommend or try to influence any decision of the borrower or P2P Lender neither will it handle any fund transfer as per the rules of the RBI.
Easy P2P Loans in India from multiple P2P Lenders
Get quick P2P Loan from multiple P2P Lenders in India who can fund your unsecured loan requirement by pooling money. These P2P Lenders are registered on our platform and they lend to borrowers who request for a loan via Cashkumar.
An alternative way to get your Loan
A complete tech-enabled platform which caters to a marketplace of borrowers and P2P Lenders and ushers a new era in the alternative lending eco-system in India
Basic Eligibility Criteria for P2P Loans
- Age of the applicant should be between 21-60 Years
- Salaried individual with minimum income of Rs 20,000. Salary bracket would again depend on the city you live in and the company you work for. Eg. If you are in a Metro the salary requirement will be higher than non-metro and again if you are working in a top MNC the salary requirement would be lesser than one working with a startup.
- Should be staying in the city for at least 1 Year
- Total work experience should be at least 2 Years
- You would require basic documentation such as your address proof, identity proof, latest bank statements etc
Want to know your Peer to Peer Loan Interest Rates?
Be informed of the different ways your Rate of Interest is calculated so that you take the right decision when it comes to choosing your loan at the lowest interest rates. Click below to know more about this,
Know P2P Loan Interest Rates
Peer to Peer Loans in India
Since money came into being, there have always been people in need of it and people who had it.
People have thus lent money to those who require it by charging a rate of interest on the principal. Even now it is not uncommon for you to lend money to a friend or relative in need with or without charging an interest rate.
The way it works is very simple with borrowers and P2P Lenders registering on our platform with their details which are thoroughly verified by us. These details are visible to all and mandated by the authorities as standard procedure for extending loans. After registering, P2P Lenders are free to advance full or part of their funds to any number of borrowers on the platform at their discretion. Once a deal has been reached, we help you formalize it through signed documents and the money transfer takes place directly between the borrower and P2P Lender. The person who avails this personal loan, at a mutually agreed interest rate, will issue PDCs directly to the P2P Lender and ensure the money in his account. Any delays or defaults attract appropriate penalties on the loan taker.
If you are someone who needs to take a loan for personal or business purpose then a new option you can choose is online peer to peer lending. Your eligibility will be displayed to the potential P2P Lenders which includes your employment, personal, financial and credit history as well as a social score. One of the advantages you get as a borrower is the chance to get a better interest rate than what you would normally get from a bank. If your eligibility parameters are exemplary then P2P Lenders might bid among themselves to offer you the lowest interest rate. On the other hand, there is a chance here of getting a loan even if your traditional eligibility is not the best. P2P lending thus might be able to come to the rescue when traditional doors are closed.
To know more contact us and/or register on our platform to start the verification process to become a P2P Lender or borrower.
Here are some stories of our customers with insights to help you make better financial decisions,
Individual Lenders to Raj's rescue
This is back in April 2016, Raj’s sister was on cloud nine as she had just got engaged to be married in May. Raj and family were all delighted but the one thing on their mind was how to arrange for the required finances. Raj decided to apply for a personal loan via a bank. Unfortunately, since he had delayed a CC payment in March for 2 days, the banks rejected his loan request. That is when he stumbled upon Cashkumar, where he realised a peer to peer lending option was available.
Since he worked in one of the better companies and had a good bank balance and a healthy credit score, he got a lovely offer from individual lenders for an 18% ROI. The good part in this option of peer to peer lending was that Raj got a pre closure option of 3 months by which he could apply to Cashkumar again for a loan from a Bank. The process was smooth where Raj submitted the required documents and the team came back with an offer which he accepted. Raj had 7 lenders funding his need of 1.5 Lakhs. The highlight was that the loan was disbursed before the committed time frame. This loan was a blessing in disguise as he did not have to approach relatives for money and the good part is we know that the marriage was a great success. We wish to help many more with this peer to peer lending option in India where RBI is now in cognisance of the need for such platforms.
Marketing Head, Cashkumar
How Peer to Peer Lending cleared my friend’s way to having a dream wedding
I have a friend who lives in Bangalore who is 32 years old and works in a tier II IT company.
He has experience of about 10 years in this job with a decent salary package. Infact he was recommended by his boss on linkedin as a great work and a asset to the company when he got an award for best employee some months back. He has been loyal to the company and has been working with them for the past 8 years since he switched from his first job for a few personal reasons.
Recently, my friend decided to get married to his long-time girlfriend. He decided to fund the entire wedding himself and not ask for funds from either set of parents. Obviously he wanted a stylish wedding and thus was looking at an expense of Rs. 3 lakh which he would have to fund somehow. So he decided to check for a personal loan through this website and see if he could get one at a good interest rate. We did the needful but found out that banks were not willing to lend him a loan despite his good credentials.
Upon exploring further we found that his CIBIL Score had taken a hit because of some monetary delinquencies he had from his younger days. He told us that he had run up a big credit card bill which he had defaulted on a couple of times but had settled in full later. This had affected his credit score leading to his loan request being declined. This was a major setback to his wedding plans and my friend was very disappointed.
We suggested he register as a borrower and seek a personal loan through the Peer to Peer or P2P method. As part of the process we took all his details and also conducted a social rating of his profile. While his credit score was still bad, a P2P Lender decided to extend a loan to him based on other factors like salary, company and social score which was very good due to his loyalty with the company and his good performance which garnered him an award and praise from his boss. The P2P Lender also extended a decent rate of interest which my friend was happy to pay.
Cashkumar facilitated the entire process and connected my friend to his P2P Lender. They signed the papers and the loan was directly disbursed to my friend by the P2P Lender. He had his dream wedding and is now paying back the loan through EMIs. Infact his marriage was a good omen as he also got a promotion and is now quite well off in job and life.
P2P loans can be a godsend for you too and a few small mistakes in your past life should not entirely cut you off from sources of credit. Register soon to be a borrower or P2P Lender.