Comodo Logo
9:30 AM - 6:30 PM


Registered with RBI

CoR No. N - 13.02258

OMLP2P Blogs

5 Trends In Peer-to-Peer Lending To Watch Out in 2020

Peer to peer lending is the process of getting a loan online with minimum paperwork wherein the entire process of submission of the loan application to the final disbursement of the fund is done over the Internet. The revolution is led by innovative fintech companies and has re-defined the rules of borrowing and lending in India.

The Indian Peer to Peer lending sector currently has some highly promising players regulated by RBI that will propel growth in the industry on the basis of their well-researched credit analytical tools, a strong back-end system, collection and recovery mechanism, and robust processes. The year 2019-2020 is expected to be the year of alternative lending and investment products like peer to peer lending which is all set to revolutionize fintech in India.

  1. More small to midsize lenders will enter
    For many, the rise of the P2P model opened the doors to the world of financial services. Nowadays, it costs less than ever to get into the lending niche. No need for enormous investments and staff. Even the REGULATIONS aren't as complex as the ones conventional banks go through.
    This means that the old-school financial institutions now have an army of smaller and hungrier online competitors. But despite being small, the new P2P lenders often provide better service due to recent advances in lending technology and fully automated lending processes.
  2. Banks don't intend to give up
    Large financial institutions have a harder time adjusting to the realities of the digital world and it takes them a lot of time to change their gears. Slowly but surely banks worldwide will start introducing P2P functionality.
    Traditional institutions often choose to develop their own solutions instead of using and customizing the existing and tested products that are already in the market. This route takes more time, the systems often turn out slow, clumsy, and not user-friendly. This means that only the banks with a more agile approach will adapt to the market to compete against the light-on-their-feet competitors.
  3. Financial inclusion for under-banked areas
    The P2P lending platform providers create better solutions to process more of the right loans safer and faster and the lenders try to tap into new markets and demographics. The smart approval processes allow serving the people who were previously undeserved in addition to providing a more flexible and fast online experience.
  4. Regulations
    In September 2017, RBI issued a notification, passing a mandate for all P2P lending platforms to be registered as non-banking financial companies (NBFCs) and published a set of guidelines for P2P lending platforms.
    The FinTech industry is still very young and governments often have trouble figuring out how to work with it and regulate it. Recently in December, 2019 RBI relaxed the upper limit for lenders in the P2P platform to 50 Lacs from 10 Lacs. This is a welcome move from the regulator. Hence it's safe to say that in 2020 the authorities will be far more focused on P2P lending.
  5. The go-to choice for younger audiences
    In India, over half the P2P market is comprised of people aged 22-42. Young people don't want to deal with stuffy corporate/financial organizations and choose the more user-friendly, paperless and online options.
    In addition to that young people often simply can't get a loan on decent conditions from conventional lenders. Mostly since they simply don't have the financial or credit history which the baby boomers have. So, the trend of millennial borrowers preferring the P2P lenders will continue.

The future of the peer to peer lending platforms is bright, there is a huge untapped market for lending which is expected to touch $ 10 billion by 2025. There are still 0.5 BILLION unbanked people in India with no credit bureau score, but the technology has made it possible to change the scenario for better for these borrowers. Start with Peer to Peer (P2P) Lending in India with the most trusted P2P platform


Post Comment
Please Enter Comment

Borrow Money Online at, A New and Better Way of Taking Personal & Business Loans
IMC's India calling conference - March 25, 2019
OMLP2P - Zee Business
OMLP2P Lending Process

  • Categories
  • Popular
  • Comment
  • Peer to Peer Lending - Future of Digital Loan Market in India

    Great Post

    Read More....
  • How do I apply online for an instant personal loan?

    Required 40000 loan for medical emergency

    Read More....
Peer to Peer Lending (5) Investment (13) P2P Lending (10) Stock Market (1) SIP (1) CIBIL (2) Credit Rating (1) Loan (32) Personal Loan (22) P2P Loan (6) Borrow Money Online (5) Invest Money Online (4) Peer-To-Peer Lending (1) Earn Higher Returns (1) Instant Personal Loan (1) personal loans (2) Quick Online Loans (1) p2p loans (2) travel loan (2) holiday loans (1) personal loan for travel (1) personal finance (1) investing (2) P2P Investments (1) personal loan (22) online personal loan (1) compare personal loan (1) cash crunch (1) all purpose loan (1) Business Loan (8) Working Capital (2) Equipment Financing (1) Business Expansion (1) Office Purchase (1) Debt Consolidation (1) Travel Loan (2) Home Improvement (1) Home Renovation (1) equity shares (1) Equity Market (1) P2P trends (1) P2P market (1) Investing in P2P (1) Peer-to-Peer (P2P) Lending (1) small business loan (2) business loan (8) p2p loan (6) Business Loans (1) Protection Insurance (1) P2P Loans (2) Small Business Loan (2) Emergency Fund (2) Defense Against Debt (1) Financial Hardship (1) Building Wealth (1) wealth building strategies (1) keys to building wealth (1) Working Capital (1) Capital of a Business (1) Working Capital Management (1) p2p lending (10) investment portfolio (1) Borrowing from Friends and Family (1) Loans from Family and Friends (1) Borrowing money from a friend (1) Tax Provision (1) P2P Investment (2) Income Tax (1) Annual Percentage Rate (1) APR (1) Loan Repayment (1) Defaulted Loan (1) Auto Investment (1) Post Lockdown (1) Financial Challenges (1) Small Loans (1) Credit Score (2) CIBIL Score (1) EMI Payment (1) Loan Payment (1) Equated Monthly Installment (1) Credit History (1) alternative assets (1) alternative finance (1) Diversified portfolio (2) Medical Emergency (1) Top Up Loan (1) Family Finances (1) Unsecured Loan (1) Personal Loans (2) Credit Cards (1) Loan Application (1) Interest Rate (1)
Call Now