Fri. Jan 21st, 2022

Grow Your Money by Lending Legally to People in India

Peer to Peer (P2P Lending) has been growing exponentially after gaining recognition from Reserve Bank of India. In this new digital era, P2P Lending has become an attractive investment option for new age investors. If recent trends are any indication, the Peer to Peer Lending method has already carved a niche for itself.  Industry leaders estimate that, by 2023, the P2P Lending will be a $4-5 billion industry in India.

What is Peer to Peer Lending?

Peer to Peer Lending is one of the simplest possible ways of lending money legally. Any person with some extra moneycan open an investor account on anRBI registered P2P platform like i2ifunding and lend money to verified and approved borrowers. Different kind of loan products are listed on the platform with different tenures and risk category. Investors can pick and invest in loan products based on their preferences., for example, offers more than 20 different kind of loan products with interest rates from 12% to 30% to the investors. P2P lending platforms source borrowers through various channels and ensures only verified and approved borrowersare listed. In addition, all P2P lending platforms need to obtain a NBFC-P2P license from RBI to offer their services.

Prudential norms by RBI for P2P Lending.

The Reserve Bank of India has laid certain normsfor investors on NBFC-P2P Platforms. Following are a few:

1. Lending Limit

The aggregate exposure of aninvestor to all borrowers at any point of time, across all P2P platforms, shall not be more than ₹50,00,000.

2. Net Worth

P2P platforms make sure the money that flows in is 100% legal. Any investor willing to invest more than ₹10,00,000 across all P2P platforms must provide a net worth certificate from a practicing CA certifying minimum net-worth of ₹50,00,000.

3. Investment amount to a single borrower

An investor can not lend more than Rs 50,000 to a single borrower across all P2P Lending platforms.

4. No Cash Transactions

Every P2P Lending platform needs to maintain two escrow accounts – one for receiving money from investors and the other for receiving loan repayment amount from the borrowers. To ensure transparency, money flows in only through bank accounts.  Any cash transaction is prohibited.

Advantages of Lending Money through P2P Lending Platforms

Peer to Peer lending platforms offers several benefits over traditional lending mechanisms.

Hassle Free Lending

Through P2P lending platforms, an investor can lend money to multiple borrower sitting at his home. If one has to find borrowers and complete all documentations themselves, it would be very difficult. Investors also have the option of auto investmentwhich makes lending easier.


All transactions done on P2P lending platforms are complete transparent. Each transaction is recorded and validated; money only flows through Escrow Accounts. It is the investors who decide whom to lend money. Email/SMS is sent on each transaction. A detailed dashboard is provided to manage, and monitor investments done.

Wide Range of Options

As an investor, you have complete freedom to diversify your funds. An investor may choose among a wide range of borrowers by looking at their credit profile, risk category, and other relevant details. In fact, it is recommended to diversify funds among various borrowers.

Good Returns

Investors can earn returns of 12-18% on a P2P lending platform, by lending directly to borrowers. Which is better than many traditional investment options.  


It only takes a few minutes for the investor to complete the registration process. Once registration is complete, investor can start lending money to borrowers.

Secured Passive Income

Investing through P2P lending platforms provides you with an opportunity to earn stable passive income minus the risks associated with other high-return avenues like share markets.

How to Lend Money through P2P Lending Platforms

Opening an account with a P2P lending platform is extremely simple. Visit a reputed P2P lending website like i2iFunding and click on SignUp. A few seconds later, you will be ready to invest. You may then visit the Verified Borrowers listing and select borrowers according to your risk profile. To make your task easier, i2iFunding has already categorized borrowers on a scale of A to X, with A being the most credit-worthy.


With inflation steadily increasing and fixed-deposit rates steadily decreasing, P2P lending is the best way to grow your money. Do a little research about the Peer to Peer lending platform before investing.

Leave a Reply

Your email address will not be published. Required fields are marked *