India Peer-to-Peer (P2P) Lending Market By Type (Consumer Lending, Business Lending), By Borrower Type (Individual, Small Business, Real Estate, Others (Marriage etc.)), By Region, Competition, Forecast & Opportunities, 2029

  • Industry : BFSI
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Summary

Report Description

Forecast Period

2025-2029

Market Size (2023)

USD10.52 Billion

CAGR (2023-2028)

19.85%

Fastest Growing Segment

Small Businesses

Largest Market

South India

India Peer-to-Peer (P2P) Lending Market is growing at a robust CAGR, thanks to the increasing trend of online payments and rising number of platforms, which support digital transactions in the country. Furthermore, the emergence of fintech companies, surge in government initiatives and high demand for credit is significantly contributing to this market’s growth.

India Peer-to-Peer Lending Market Scope

Peer-to-peer (P2P) lending is a form of lending that takes place directly between individuals or "peers" without the involvement of a traditional financial institution, such as a bank. In a P2P lending model, borrowers apply for loans through an online platform that connects them with potential lenders.

Peer-to-peer lending can be a good option for borrowers who face difficulties in obtaining loans from traditional sources or who want to avoid high interest rates and fees associated with credit cards or payday loans. It can also be a way for investors to diversify their portfolios and earn higher returns than they might gain from traditional investments, such as savings accounts. However, as with any investment, P2P lending carries risks and it is important to do proper homework before participating in this type of lending.

India Peer-to-Peer Lending Market Overview

In recent years, peer-to-peer lending has become increasingly The India peer-to-peer lending market is expected to grow at a faster rate in forecasted period. The market is significantly driven by the rise of digital payments, increasing internet usage, and fueling demand for credit among consumers and small businesses. P2P lending platforms in India are using AI and ML to assess credit risk and make lending decisions. This has helped to reduce the risk of default and improve the overall efficiency of the lending process.

The peer-to-peer lending market in India is a rapidly growing segment of the fintech industry. P2P lending platforms connect borrowers with investors (lenders) through an online marketplace, enabling borrowers to obtain loans at competitive interest rates and investors to earn higher returns on their investments. The high return rates in P2P lending are the main factor that is attracting Indian investors to take it up as a preferred investment choice. Compared to conventional investing choices, such as savings accounts and fixed deposits, it offers significantly higher returns. P2P lending platforms offer yields of 10–14%, depending on the risk involved with the borrower, as opposed to low returns of 3-4% offered by savings accounts and fixed deposits.

India Peer-to-Peer Lending Market Drivers

The peer-to-peer lending market in India has grown rapidly in recent years, driven by a combination of factors, such as increasing usage of smartphone and internet penetration, a large population of underserved borrowers, high demand for credit, and a supportive regulatory environment.

The flexibility offered by peer-to-peer lending is another factor contributing to its growing popularity among Indian investors. Investors can choose the amount they want to lend and the length of time they want to keep their investment on P2P lending platforms. This implies that investors can customize their investments to meet their unique demands and financial objectives.

P2P lending platforms also provide a range of investment possibilities, including secured and unsecured loans, loans to individuals and businesses, both, and for both, short- and long-term periods, as well. Investors can diversify their portfolio and spread their risk over a number of loans and borrowers, owing to this hyper-diversification. Borrowers can apply for loans online and receive funds quickly, while investors can browse and invest in loans through the platform. Thus, peer-to-peer lending platforms are easy to access and use, which makes them popular among borrowers and investors.

India Peer-to-Peer Lending Market Trends

The peer-to-peer lending market in India has been experiencing significant growth in the SME lending market. Many SMEs in India are unable to access credit from traditional banks, and P2P lending platforms provide an alternative source of funding for these businesses. Additionally, the RBI has established guidelines for maintaining confidentiality regarding any transactions made through the platform. P2P platforms use advanced technology to follow the confidentiality standards of the RBI, making them reliable platforms to borrow from or lend to, unlike certain other platforms where sensitive data is not secured properly.

Nowadays, a lot of P2P platforms incorporate artificial intelligence (AI) and machine learning, which has increased the security of transactions. For instance, artificial intelligence can enhance current credit risk models, reducing the default risk of loans granted by up to 70%. Thus, P2P business has evolved into a relatively secure platform for investors and borrowers wanting to achieve their financial objectives, thanks to IT regulations and RBI restrictions. This factor is also expected to propel the market during the forecast period.

India Peer-to-Peer Lending Market Challenges

Though peer-to-peer (P2P) lending market in India has been growing rapidly, the market also faces several challenges. Many potential borrowers and investors are still unaware of P2P lending as an alternative source of credit and investment. This lack of awareness can make it challenging for P2P lending platforms to attract borrowers and investors. Also, these platforms are at a higher risk of default when borrowers fail to repay their loans. While many platforms have measures put in place to reduce the risk of default, such as credit checks and risk assessments, there is always a risk. The government does not offer insurance or any other kind of protection to lenders if a borrower defaults. Also, P2P lending platforms in India have limited access to funding than traditional banks. This can make it challenging for platforms to scale up and meet the growing demand for credit.


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Market Recent Developments

  • In 2022, Dreamplug Technologies Pvt. Limited, the owner of the fintech unicorn, Cred, acquired a minority stake in Mumbai-based lending company, LiquiLoans, with an investment of up to USD 10 million.
  • As part of BharatPe's peer-to-peer business, individual investors will be able to invest and borrow money through the "12% Club" app launching in 2021.In 2020, Faircent announced the launch of a new loan program to assist small businesses and individuals in India that have had minimal or no financial impact from the COVID-19 pandemic.
  • In 2020, 5paisa launched a peer-to-peer lending platform, where one can earn interest as high as 36 per cent per annum and can lend up to USD 61,136 to multiple borrowers.

Market Opportunities

The peer-to-peer (P2P) lending market in India presents several opportunities for growth and innovation to its stakeholders. P2P lending platforms in India can help address the credit gap by providing access to credit for SMEs and individuals without credit history. Indian investors are looking for diversification in their investment portfolios. P2P lending offers the chance to diversify investments through providing loans to borrowers with various credit histories and risk profiles. P2P lending platforms in India can collaborate with traditional financial institutions, such as banks and NBFCs, to expand their reach and offer more loan products to borrowers in the coming years.

P2P lending platforms in India can integrate with digital banking platforms to provide a seamless and convenient lending experience for borrowers. This can also help to increase the reach of P2P lending platforms and attract more borrowers. P2P lending platforms in India can expand into rural markets, where there is a large unmet demand for credit. This can help to promote financial inclusion and provide access to credit for those who need it the most. Thus, P2P lending market in India presents several opportunities for growth and innovation, and platforms that can capitalize on these opportunities are likely to succeed in the forecasted period.

Market Segmentation

The India peer-to-peer lending market is analyzed on three fronts: Type, borrower type, and region. Based on type, the market is segmented into consumer lending and business lending. Based on borrower type, the market is segmented into individual, small business, real estate, and others (marriage etc.). Based on region, the market is divided into North, South, East, and West.

Company Profiles

Transactree Technologies Private Limited (Lendbox), Fairassets Technologies Private Limited (Faircent), RNVP Technology Private Limited (i2ifunding), Bridge Fintech Solutions Private Limited (Finzy), Innofin Solutions Private Limited, Lendingkart Technologies Private Limited, Fintelligence Data Science Private Limited (RupeeCircle), Fair Vinimay Services Private Limited, Etyacol Technologies Pvt. Ltd (Cashkumar), and NDX P2P Private Limited (LiquiLoans) are some of the major players in the India peer-to-peer lending market.

Attribute

Details

Base Year

2023

Historic Data

2019 – 2022

Estimated Year

2024

Forecast Period

2028 – 2029

Quantitative Units

Value in USD Million, CAGR for 2019-2023 and 2024-2029

Report Coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

Type

Borrower Type

Region

Regional scope

North, South, East, West

Key Companies Profiled

Transactree Technologies Private Limited (Lendbox), Fairassets Technologies Private Limited (Faircent), RNVP Technology Private Limited (i2ifunding), Bridge Fintech Solutions Private Limited (Finzy), Innofin Solutions Private Limited, Lendingkart Technologies Private Limited, Fintelligence Data Science Private Limited (RupeeCircle), Fair Vinimay Services Private Limited, Etyacol Technologies Pvt. Ltd (Cashkumar), and NDX P2P Private Limited (LiquiLoans)

Customization scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

 

Report Scope:

In this report, India Peer-to-Peer Lending market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Peer-to-Peer Lending Market, By Type:
    • Consumer Lending
    • Business Lending
  • India Peer-to-Peer Lending Market, By Borrower Type:
    • Individual
    • Small Business
    • Real Estate
    • Others (Marriage etc.)
  • India Peer-to-Peer Lending Market, By Region:
    • North
    • South
    • East
    • West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Peer-to-Peer Lending market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

The India Peer-to-Peer Lending Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Introduction

1.1.  Product Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Assumptions and Limitations

3.    Executive Summary      

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Voice of Customer Analysis

4.1.  Brand Awareness

4.2.  Challenges Faced by Customers

5.    India Peer-to-Peer Lending Market Outlook

5.1.  Market Size & Forecast

5.1.1.        By Value

5.2.  Market Share & Forecast

5.2.1.        By Type Market Share Analysis (Consumer Lending and Business Lending)

5.2.2.        By Borrower Type Market Share Analysis (Individual, Small Business, Real Estate and Others (Marriage etc.))

5.2.3.        By Regional Market Share Analysis

5.2.3.1.                North India Market Share Analysis

5.2.3.2.                South India Market Share Analysis

5.2.3.3.                East India Market Share Analysis

5.2.3.4.                West India Market Share Analysis

5.2.4.        By Top 5 Companies Market Share Analysis, Others (2023)

5.3.  India Peer-to-Peer Lending Market Mapping & Opportunity Assessment

5.3.1.        By Type Market Mapping & Opportunity Assessment

5.3.2.        By Borrower Type Market Mapping & Opportunity Assessment

5.3.3.        By Regional Market Mapping & Opportunity Assessment

6.    North India Peer-to-Peer Lending Market Outlook

6.1.  Market Size & Forecast       

6.1.1.        By Value

6.2.  Market Share & Forecast

6.2.1.        By Type Market Share Analysis

6.2.2.        By Borrower Type Market Share Analysis

7.    East India Peer-to-Peer Lending Market Outlook

7.1.  Market Size & Forecast       

7.1.1.        By Value

7.2.  Market Share & Forecast

7.2.1.        By Type Market Share Analysis

7.2.2.        By Borrower Type Market Share Analysis

8.    West India Peer-to-Peer Lending Market Outlook

8.1.  Market Size & Forecast       

8.1.1.        By Value

8.2.  Market Share & Forecast

8.2.1.        By Type Market Share Analysis

8.2.2.        By Borrower Type Market Share Analysis

9.    South India Peer-to-Peer Lending Market Outlook

9.1.  Market Size & Forecast       

9.1.1.        By Value

9.2.  Market Share & Forecast

9.2.1.        By Type Market Share Analysis

9.2.2.        By Borrower Type Market Share Analysis

10. Market Dynamics

10.1.             Drivers

10.1.1.     Support through government initiatives

10.1.2.     Increasing demand from SMEs and Start-ups

10.1.3.     Changing payment trend

10.2.             Challenges

10.2.1.     Lack of awareness

10.2.2.     Limited access to funding

11. Impact of COVID-19 on India Peer-to-Peer Lending Market

11.1.             Impact Assessment Model   

11.1.1.     Key Segments Impacted

11.1.2.     Key Regions Impacted

12. Market Trends & Developments

12.1.             Rising digital payments

12.2.             Use of AI and ML to assess credit risk

12.3.             Rising internet penetration

12.4.             High return rates

12.5.             Growth of fintech industry

13. SWOT Analysis

13.1.             Strengths

13.2.             Weaknesses

13.3.             Opportunities

13.4.             Threats

14. Policy & Regulatory Landscape

15. India Economic Profile

16. Competitive Landscape

16.1.             Company Profiles

16.1.1.     Transactree Technologies Private Limited (Lendbox)

16.1.1.1.             Company Details

16.1.1.2.             Product & Services

16.1.1.3.             Financials (As Per Availability)

16.1.1.4.             Key market Focus & Geographical Presence

16.1.1.5.             Recent Developments

16.1.1.6.             Key Management Personnel

16.1.2.     Fairassets Technologies Private Limited (Faircent)

16.1.2.1.             Company Details

16.1.2.2.             Product & Services

16.1.2.3.             Financials (As Per Availability)

16.1.2.4.             Key market Focus & Geographical Presence

16.1.2.5.             Recent Developments

16.1.2.6.             Key Management Personnel

16.1.3.     RNVP Technology Private Limited (i2ifunding)

16.1.3.1.             Company Details

16.1.3.2.             Product & Services

16.1.3.3.             Financials (As Per Availability)

16.1.3.4.             Key market Focus & Geographical Presence

16.1.3.5.             Recent Developments

16.1.3.6.             Key Management Personnel

16.1.4.     Bridge Fintech Solutions Private Limited (Finzy)

16.1.4.1.             Company Details

16.1.4.2.             Product & Services

16.1.4.3.             Financials (As Per Availability)

16.1.4.4.             Key market Focus & Geographical Presence

16.1.4.5.             Recent Developments

16.1.4.6.             Key Management Personnel

16.1.5.     Innofin Solutions Private Limited

16.1.5.1.             Company Details

16.1.5.2.             Product & Services

16.1.5.3.             Financials (As Per Availability)

16.1.5.4.             Key market Focus & Geographical Presence

16.1.5.5.             Recent Developments

16.1.5.6.             Key Management Personnel

16.1.6.     Lendingkart Technologies Private Limited

16.1.6.1.             Company Details

16.1.6.2.             Product & Services

16.1.6.3.             Financials (As Per Availability)

16.1.6.4.             Key market Focus & Geographical Presence

16.1.6.5.             Recent Developments

16.1.6.6.             Key Management Personnel

16.1.7.     Fintelligence Data Science Private Limited (RupeeCircle)

16.1.7.1.             Company Details

16.1.7.2.             Product & Services

16.1.7.3.             Financials (As Per Availability)

16.1.7.4.             Key market Focus & Geographical Presence

16.1.7.5.             Recent Developments

16.1.7.6.             Key Management Personnel

16.1.8.     Fair Vinimay Services Private Limited

16.1.8.1.             Company Details

16.1.8.2.             Product & Services

16.1.8.3.             Financials (As Per Availability)

16.1.8.4.             Key market Focus & Geographical Presence

16.1.8.5.             Recent Developments

16.1.8.6.             Key Management Personnel

16.1.9.     Etyacol Technologies Pvt. Ltd (Cashkumar)

16.1.9.1.             Company Details

16.1.9.2.             Product & Services

16.1.9.3.             Financials (As Per Availability)

16.1.9.4.             Key market Focus & Geographical Presence

16.1.9.5.             Recent Developments

16.1.9.6.             Key Management Personnel

16.1.10.  NDX P2P Private Limited (LiquiLoans)

16.1.10.1.          Company Details

16.1.10.2.          Product & Services

16.1.10.3.          Financials (As Per Availability)

16.1.10.4.          Key market Focus & Geographical Presence

16.1.10.5.          Recent Developments

16.1.10.6.          Key Management Personnel

17. Strategic Recommendations/Action Plan

17.1.             Key Focus Areas

17.2.             Target Regions

17.3.             Target Type

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Figures and Tables

Frequently asked questions

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The key factors driving the India peer-to-peer lending market are increasing government initiatives, rising adoption of digital payments, growing internet penetration, and fueling demand for business loans in SMEs.

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Peer-to-peer funding is legal in India, where it is governed by the Reserve Bank of India.

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To operate platforms for peer-to-peer lending, the Reserve Bank of India (RBI) had registered 25 NBFCs as of January 2022.

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The key players in the India peer-to-peer lending market are Transactree Technologies Private Limited (Lendbox), Fairassets Technologies Private Limited (Faircent), RNVP Technology Private Limited (i2ifunding), Bridge Fintech Solutions Private Limited (Finzy), Innofin Solutions Private Limited, Lendingkart Technologies Private Limited, Fintelligence Data Science Private Limited (RupeeCircle), Fair Vinimay Services Private Limited, Etyacol Technologies Pvt. Ltd (Cashkumar), and NDX P2P Private Limited (LiquiLoans).

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Srishti Verma

Business Consultant
Press Release

India Peer-to-Peer Lending Market to be Led by Small Business Segment through 2029

Jun, 2023

Increasing adoption of digital payments and rising demand from small and medium-sized enterprises (SMEs) are leading the India peer-to-peer lending market during the forecast period.

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