PEER TO PEER LENDING
MADE BY:
SANJAY

Agenda
 What is P2P Lending
 P2P Platforms
 Types of P2P Platforms
 Functions of P2P
Platforms
 The Process
 Advantages and
Disadvantages
 Risks factors
 P2P Platforms in India
 Challenges
 Recommendations

What is P2P Lending
 It is an emerging Internet-
based application where
individuals can directly borrow
money from each other.
 It allows people to borrow and
lend money without a financial
institution.
 So basically it is a new-age
avatar of old fashioned
borrowing retouched by the
principles of crowd lending
and technology.

P2P Platforms
 P2P lending platforms are largely
tech companies registered under
the Companies Act 1956/2013.
 They match Borrowers
with lenders.
 They act as a facilitators and
provide additional services.

Types of P2P Platforms
P2P lending platforms based on their working models:
 Application Domain
I. General platforms
II. Professional platforms
 Trading Rule
I. Auction-based platforms
II. Non auction-based platforms
 Reward Type
I. Donation-based platforms
II. Reward-based platforms
III. Equity-based platforms
IV. Lending-based platforms

FUNCTIONS OF P2P PLATFORM
ACTIVITIESCARRIEDOUTBYTHE
P2PLENDINGPLATFORMS
Verifying KYC
Assessing credit
worthiness
Digitally connecting
Investors and Borrowers
Agreements and
Documentations
Collection and Recovery
of loans
Send legal notice

REGISTER AND CREATE PROFILE UPLOAD DOCUMENTS KYC VERIFICATION
AND RISK ASSESMENT
LIST LOAN
REQUIREMENT
E-CONNECTIONLOAN DOCUMENTATION
FUNDING OF LOAN LOAN REPAYMENT(EMI) LOAN CLOSURE

Advantages
of P2P
Lending
COST
CONVENIENCE
CONSUMERCHOICE
COMFORT

DISADVANTAGES
Lender’s money is at risk
No provision in the Indian penal code
Getting a loan is not guaranteed
No common portfolio of loans
Charge various fees

Risks factors critical to any P2P
platform
 No peers or history available to rely on
 Data privacy is of utmost significance
 Appropriate documentation will be a constant challenge
 Regular functioning of the platform

P2P PLATFORMS IN INDIA
 Fairassets technologies India
Pvt Ltd
 OHMY Technologies Private
Limited
 BigWin Infotech Pvt Ltd
 Lend Box
 I-lend

CHALLENGES
 Creating awareness
 People’s mind-set
 Finding credit worthy borrowers
 Mitigate risk
 Ensuring timely repayments

RECOMMENDATIONS
 Repayments should be either half yearly or yearly.
 Common portfolio of loans
 A high end security systems and proper encryption techniques
 KYC checks should be carried out robustly
 Provision in the IPC governing