Peer to Peer lending, also known as P2P Lending, is a financial innovation which connects verified borrowers seeking unsecured personal loans with investors looking to earn higher returns on their investments. Verified borrowers are listed on the P2P lending platform, Investors can see all the details about the borrowers before lending money to them. Investors have the option to lend small amounts to multiple borrowers to diversify their investments.

Peer to Peer Lending is already a hugely successful model for alternate financing across the globe. In India, P2P Lending is gaining traction at a very fast pace and slowly becoming a very attractive investment option for investors. RBI has already taken a cognizance of this innovation and come up with regulations for the sector.