India Peer-to-Peer Lending Market Assessment, By Lending Model [Direct, Marketplace], By Credit Type [Business Loan, Personal Loan, Others], By Credit Tenure [Short-term, Long-term], By Lender Type [Individual, Firm, HUF, Body of Individuals, Institutiona

India Peer-to-Peer Lending Market Assessment, By Lending Model [Direct, Marketplace], By Credit Type [Business Loan, Personal Loan, Others], By Credit Tenure [Short-term, Long-term], By Lender Type [Individual, Firm, HUF, Body of Individuals, Institutional Investors, Others], By Returns [Lumpsum, Monthly Returns], By End-user/Borrower Type [Natural Person, Business Entity, Others], By Region, Opportunities and Forecast, FY2018-FY2032F



India peer-to-peer lending market is projected to witness a CAGR of 15.01% during the forecast period FY2025-FY2032, growing from USD 2.78 billion in FY2024 to USD 8.51 billion in FY2032. Peer-to-peer lending is not a novel concept in India. However, with wide access to the internet and digitalization, market dynamics have changed, and over the past decade, peer-to-peer lending has turned into an innovative and convenient means of financing. One of the key features and concept of peer-to-peer lending is elimination of a financial institution as an intermediary in the deal between a lender and a borrower. In the Indian market, peer-to-peer lending is becoming popular among Indian demographics due to the various benefits such as ease of access, flexibility, more control over lending, and constant returns on investment.

India peer-to-peer lending market is growing at an impressive growth rate owing to the growing Indian economy, urbanization, rising disposable income, rise in consumer spending, and digitalization. Indian financing industry is drastically changing over the years, from filling out loan applications and waiting for loan approval for days to current scenarios when obtaining a consumer loan, be it personal or business, takes a few clicks and the loan money is immediately or at most deposited into the borrower’s account within a day, consumer financing has experienced a tremendous transformation and peer-to-peer lending market stands at the forefront of the transition. The adoption of technology by consumers has helped the market to expand consistently by allowing the market players to reach out to their key stakeholders without making any physical presence. Regulatory and compliance requirements by the government have aided in building consumer trust in the P2P lending market. With all the factors coming together, the market is poised to grow and create opportunities for many existing players to grow and new ones to enter the market.

Adoption of Technology and Digital Transformation

India peer-to-peer lending market has grown significantly and seen a complete transformation in finance industry. The rapid digitalization of financial services in India stands out as a pivotal driver propelling the growth and evolution of P2P lending. Higher usage and sales of smartphones and internet availability across the country have helped create awareness of P2P lending through digital means to a wider audience. Borrowers and lenders can engage in lending and borrowing activities conveniently through online platforms, eliminating geographical constraints. Digital transformation is a boon for India peer-to-peer lending market as players have launched their websites and mobiles applications to enable users to access lending and borrowing services from their smartphones, promoting financial inclusion and on-the-go transactions.

For instance, e-KYC is a major benefit to the market players because of the adoption of technology and digitalization. Through a computer or a mobile device, getting a KYC (know your customer) has never been easier and simpler for businesses and companies by saving time, money, and resources.

Lendbox, India's top peer-to-peer lending platform has disrupted the traditional lending market. Lendbox has made significant investments in developing a more personalized customer experience. Their emphasis on sales and technology has benefited the company's growth, as Lendbox has Assets Under Management (AUM) of over 2,600 crores as of January 2024.

Young Demographics and Rapid Urbanization

Indian economy is witnessing rapid urbanization with more villages turning into towns or cities, people are moving towards urban areas in search of better living conditions and work opportunities. Indian population consists largely of young individuals, with a median age below 30 years, who are tech-savvy and more inclined toward digital financial solutions. Moreover, the financial literacy rate is higher in urban areas due to which urban people have the knowledge to avail and utilize the peer-to-peer finance platforms in a better way. These P2P lending platforms leverage demographic trends, offering user-friendly interfaces, and mobile accessibility to cater to the preferences of younger generation.

In younger demographic, peer-to-peer lending is considered an investment option to gain a regular income through higher interest rates on their saving. The large and youthful population of India is more inclined to borrow money for various needs, such as education, housing and personal expenses, and people leveraging P2P lending platforms to the fullest as they are quick and convenient. However, millennials are the largest stakeholders in India peer-to-peer lending market as borrowers.

In collaboration with Lend Box, an RBI-registered P2P licensed NBFC in India, in December 2022, EaseMyDeal introduced Profit++, a peer-to-peer lending product that promises to yield returns of flat 10% annually. By launching Proft++ as a New Online Product on their App, EaseMyDeal has made the investing process incredibly simple, transparent, and quick. Proft++ offers lenders with choice, flexibility, and convenience while investing.

Technological Advancements in India Peer-to-Peer Lending Market

Like other markets and industries, where technology plays an important role in its operations and growth, India peer-to-peer lending market is not so far to adopt various technologies that aid in the market growth. Digitalization is one of the components that is continuously helping the market with adoption of advanced technologies such as artificial intelligence (AI), machine learning, and blockchain. These technologies give an added advantage to P2P platforms over the other financial markets.

Blockchain, the underlying technology that powers cryptocurrencies such as Bitcoin, provides a decentralized and secure platform for conducting and documenting financial transactions. P2P lending services can use blockchain to increase transparency, decrease fraud, and improve the lending process.

AI-powered algorithms can analyze massive volumes of financial and non-financial data to evaluate a customer’s creditworthiness properly and objectively. AI algorithms can evaluate an applicant’s creditworthiness by analyzing their financial history, credit scores, income statements, and social media activity. These algorithms use machine learning approaches to continuously learn and enhance their credit evaluation models based on data trends and past performance.

By adopting these technologies, P2P lending platforms can make a more automated process where a lender can find the right match with a borrower and the borrower can find the best lender as per their requirement.

Future Market Scenario (2025-2032F)

India peer-to-peer lending market is poised to grow at an impressive growth rate in the forecast period owing to growing market awareness and convenience provided by the market players.

The market is regulated by the Indian government due to consumer interest and it is expected that the Indian government and the Central Bank (RBI) will bring more rules and guidelines in the future for the market.

In coming years, Generation Z will become an important customer for the market as an expansion to the consumer base of Millennials who currently make the largest customer segment of India P2P lending market.

Key Players Landscape and Outlook

India peer-to-peer lending market is an evolving and dynamic market comprising diverse players including non-banking financial companies (NBFCs) and fintech startups offering consumer finance services in the realm of peer-to-peer lending. The outlook is positive as the market is untapped with limited market players creating new opportunities in the market and innovations on their platforms and strategies. India peer-to-peer lending market is positive for years to come, owing to the growing urban population, increasing financial education, digitalization, young population, changing behavior towards borrowing and lastly economic growth. Technology will play an important role for the market players to gain a competitive edge and create a USP.

In May 2022, Fi Money, a neobank, expanded its offering by launching an investing platform to attract regular investors. For it, the firm's savings arm shortly launched a peer-to-peer lending platform.


1. Research Methodology
2. Project Scope & Definitions
3. Impact of COVID-19 on India Peer-to-Peer Lending Market
4. Executive Summary
5. Voice of Customer
5.1. Demographics (Gender; Income – Low, Mid and High; Geography; Nationality; etc.)
5.2. Market Awareness and Product Information
5.3. Brand Awareness and Loyalty
5.4. Factors Considered in Lending Decision
5.4.1. Institution Name
5.4.2. Interest Rate
5.4.3. Returns
5.4.4. Loan Period
5.4.5. Collateral
5.4.6. Charges
5.4.7. Investment Options
5.4.8. Credit Worthiness
5.5. Purpose of Purchase
5.6. Frequency of Purchase
5.7. Medium of Purchase
5.8. Role of Brand Ambassador or Influencer Marketing on Product/Brand Absorption
6. India Peer-to-Peer Lending Market Outlook, FY2018-FY2032
6.1. Market Size & Forecast
6.1.1. By Value
6.2. By Lending Model
6.2.1. Direct
6.2.2. Marketplace
6.3. By Credit Type
6.3.1. Business Loan
6.3.2. Personal Loan
6.3.2.1. Marriage Loan
6.3.2.2. Education Loan
6.3.2.3. Medical Loan
6.3.2.4. Home Renovation Loan
6.3.2.5. Others
6.3.3. Others
6.4. By Credit Tenure
6.4.1. Short-term (Up to 12 months)
6.4.2. Long-term (More than 12 months)
6.5. By Lender Type
6.5.1. Individual
6.5.2. Firm
6.5.3. HUF
6.5.4. Body of Individuals
6.5.5. Institutional Investors
6.5.6. Others
6.6. By Returns
6.6.1. Lumpsum
6.6.2. Monthly Returns
6.7. By End-user / Borrower Type
6.7.1. Natural Person
6.7.2. Business Entity
6.7.3. Others
6.8. By Region
6.8.1. North
6.8.2. South
6.8.3. East
6.8.4. West and Central
6.9. By Company Market Share (%), FY2024
7. Market Mapping, FY2024
7.1. By Lending Model
7.2. By Credit Type
7.3. By Credit Tenure
7.4. By Lender Type
7.5. By Returns
7.6. By End-user / borrower
7.7. By Region
8. Macro Environment and Industry Structure
8.1. Supply Demand Analysis
8.2. Regulatory Framework and Compliance
8.2.1. RBI Guidelines and Policies
8.2.2. Monetary & Fiscal Policies
8.2.3. Taxation Policies
8.3. PESTEL Analysis
8.3.1. Political Factors
8.3.2. Economic System
8.3.3. Social Implications
8.3.4. Technological Advancements
8.3.5. Environmental Impacts
8.3.6. Legal Compliances and Regulatory Policies (Statutory Bodies Included)
8.4. Porter’s Five Forces Analysis
8.4.1. Supplier Power
8.4.2. Buyer Power
8.4.3. Substitution Threat
8.4.4. Threat from New Entrant
8.4.5. Competitive Rivalry
9. Market Dynamics
9.1. Growth Drivers
9.2. Growth Inhibitors (Challenges and Restraints)
10. Key Players Landscape
10.1. Competition Matrix of Top Five Market Leaders
10.2. Market Revenue Analysis of Top Five Market Leaders (in %, FY2024)
10.3. Mergers and Acquisitions/Joint Ventures (If Applicable)
10.4. SWOT Analysis (For Five Market Players)
10.5. Patent Analysis (If Applicable)
11. Pricing Analysis
11.1. Pricing by Individual Lenders
11.2. Interest Rate Analysis (by Borrower and Lender)
12. Case Studies
13. Key Players Outlook
13.1. Fairassets Technologies Private Limited ('Faircent')
13.1.1. Company Details
13.1.2. Key Management Personnel
13.1.3. Products & Services
13.1.4. Financials (As reported)
13.1.5. Key Market Focus & Geographical Presence
13.1.6. Recent Developments
13.2. Trickle Flood Technologies Private Limited
13.3. Bridge Fintech Solutions Private Limited (“finzy”)
13.4. Transactree Technologies Private Limited (Lendbox)
13.5. NDX P2P PRIVATE LIMITED (“LiquiLoans”)
13.6. FINTELLIGENCE DATA SCIENCE PRIVATE LIMITED (“RupeeCircle”)
13.7. M/s Dipamkara Web Ventures Private Limited (i-lend)
13.8. Monexo Fintech Private Limited
13.9. RNVP Technology Private Limited (i2i)
13.10. Resilient Innovations Private Limited (12% Club)
*Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work
14. Strategic Recommendations
15. About Us & Disclaimer

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