India’s digital lending landscape has experienced remarkable growth in recent years, transforming the way individuals and businesses access credit. This surge is driven by a confluence of technological advancements, regulatory support, and evolving consumer behavior.

Market Growth and Projections

According to The Economic Times, in FY 2024–25, fintech non-banking financial companies (NBFCs) sanctioned a record 10.9 crore personal loans, marking a significant increase in credit access through digital platforms.

Looking ahead, the market is poised for continued expansion. The India digital lending platform market generated a revenue of USD 400.1 million in 2023 and is expected to reach USD 2,377.1 million by 2030, growing at a CAGR of 29% from 2024 to 2030.

Key Drivers of Growth

Technological Advancements

Unified Lending Interface (ULI): Introduced by the Reserve Bank of India...

In recent years, investors seeking stable returns have started exploring options beyond traditional fixed deposits (FDs).

P2P lending in India has emerged as a compelling alternative, offering potentially higher yields while allowing individuals to directly fund borrowers.

As interest rates on FDs remain relatively low, P2P lending is gaining traction among those looking for better returns without locking funds into rigid, long-term commitments.

This article explores why p2p lending is becoming a preferred choice over fixed deposits, examining factors such as returns, flexibility, risk diversification, and ease of access.

1. Higher Potential Returns Compared to Fixed Deposits

One of the primary reasons investors are shifting toward P2P lending is the possibility of earning higher returns. Fixed deposits, while safe, often provide modest interest rates that may not keep pace with...