What is P2P Investing?

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P2P investing helps investors connect with borrowers to lend their money without the interference of banks. This is done on websites where borrowers ask for loans and investors can choose to fund them. This is how investors earn interest on their money.

In India, P2P investing is growing on account of many reasons. Investors now have easy access to these online platforms and anyone can start with P2P investing with small amounts. Also, it offers better interest rates than traditional savings accounts or fixed deposits.

One platform that is helping the growth of peer-to-peer investing in India is 13Karat. 13Karat is a secure and user-friendly P2P-enabled investment app for investors. Just download the app from Google Playstore or AppStore and you are all set to be a part of this P2P investment world. 13Karat uses advanced technology to ensure that the investments are going to reliable P2P loans, securing investors’ money. No wonder this P2P investment app has built trust among investors over time.

Benefits of P2P Investing

When you consider P2P investing to grow your money, here are the major benefits you can avail:

  • Higher Returns

With the help of P2P investment platforms like 13Karat, investors can earn more interest than what they would have earned through traditional savings accounts, with returns on investments as high as 13% per annum. Additionally, this is a non-market-linked investment, providing a more stable and predictable return.

  • Small Start

With P2P lending platforms, it has become easy for anyone to start investing in small amounts. For example - with 13Karat, investors can start with as low as ₹500 to begin their peer-to-peer investing journey.

  • Helping Others

As investors, you are also helping small businesses and individuals who are facing difficulties in getting traditional bank loans.

Regulatory Environment

The Reserve Bank of India (RBI) regulates P2P investing platforms so that transparency can be maintained and investors are protected from fraud.

As of now, the major rules set by the RBI include:

  • All P2P platforms must register as Non-Banking Financial Companies (NBFC) with the RBI.
  • Peer-to-peer lending platforms must have a minimum of ₹20 million to operate.
  • Platforms must provide clear information about borrowers and risks.
  • They should not do things that harm the public interest.
  • They must only act as facilitators between lenders and borrowers.

Future Challenges in P2P Lending or Investing

Now, let’s talk about the major challenges P2P investing faces in India:

  • It is not easy to manage risks and make sure borrowers repay loans on time. There is no fixed way to deal with borrowers when they default on P2P loans.
  • As of now, Indian investors are not very aware of peer-to-peer lending and investing. This results in a significant challenge in educating people about its benefits and risks.
  • There is a lack of regulatory framework as this new investment avenue is still evolving in India.
  • With time and technological advancement, P2P investment apps or websites must work on reducing cyber threats and have user-friendly interfaces to build trust.

Technological Innovations in P2P Investing

Ever since its inception, P2P investing has witnessed significant technological advancements, making investing safer and more efficient. The major innovations include:

  • Smart Algorithms: Platforms like 13Karat use advanced algorithms to check the credit risk of borrowers.
  • Blockchain: Many platforms are exploring blockchain technology to enhance security and transparency.
  • AI and Machine Learning: These technologies help in better risk assessment and investment recommendations.
  • Mobile Apps: User-friendly apps like 13Karat make it easier for investors to manage their investments on the go.

The Promising Future of P2P Investing

There is no doubt that P2P investing is going to be an important part of India's financial landscape in the future. So, do not wait and join the trend!

If you are looking for a high-return investment in India, you must consider investing in P2P investments with 13Karat. Download the 13karat app and explore the best investment plans in India! Its 6-month and 3-month investment plans offer returns of up to 13% and 12% per annum!

 

 

(This article is part of IndiaDotCom Pvt Ltd’s Consumer Connect Initiative, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The IDPL Editorial team is not responsible for this content.)