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Since P2P lending companies operate online, they can run with lower overheads and provide the service more cost-efficiently than traditional financial institutions. Thereby creating a win-win ecosystem, where lenders can earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates.

P2P is an RBI regulated entity registered as Peer to Peer Lending platform that uses new-age technology to match prime borrowers and lenders and in the process eliminates the high intermediation cost plus margins charged by traditional banks and NBFCs, thus, making borrowing cheaper and investing/lending a more lucrative opportunity as compared to traditional investment avenues.

The investment opportunity in P2P is similar to a debt mutual fund where your investment is diversified across multiple borrowers and managed by experts. The exposure is towards small-ticket retail consumer loans which are generally considered safer than corporate debt. On account of lower cost & elimination of middlemen, the returns can be up to 1.5x-2x of liquid debt mutual funds. P2P is set apart from other P2P players as it focuses on only selected segments, education, healthcare & home improvement, which have very strong end-use cases and limited chances of default.