Alok Kumar Agarwal Investigates the Evolution of Peer-to-Peer Lending at Alankit
Over the last decade, the finance sector has undergone significant changes, continually evolving. Peer-to-Peer (P2P) lending has emerged as a major opportunity, directly connecting borrowers with lenders. This new trend has drawn the attention of analysts, investors, customers, businesses, and regulators alike. P2P lending is not only growing globally but also gaining a strong presence in India.
In India, P2P lending works through online platforms that link individuals or businesses needing funds with investors seeking good opportunities. These platforms simplify the lending process by eliminating traditional financial intermediaries. Borrowers apply for loans, explaining their needs and providing financial background information. The P2P platforms then assess their creditworthiness using both traditional credit scoring and alternative data.