Alok Kumar Agarwal Alankit Perspective on the Future of Finance
Peer-to-peer (P2P) lending in India happens online, linking people or businesses who need money with investors seeking good opportunities. These platforms make lending easier by skipping traditional banks and middlemen. When someone asks for a loan, they explain why they need it and share financial info. P2P platforms then check if they're likely to pay back by looking at their credit score and other data.
Once a loan gets enough support, the platform gives the money to the borrower. They agree to the terms, like how much interest to pay and when to repay. After that, they make regular payments, and the lenders get interest. P2P platforms keep an eye on things, making sure everyone follows the rules and managing risks to keep investors safe.
Alok Kumar Agarwal Alankit points out that P2P lending is fair because anyone can join in, even if they don't have a lot of money. Small businesses often struggle to get loans from banks, but P2P lending gives them another option. Without this kind of help, small businesses might have a hard time surviving. So, they're likely to turn to P2P lending companies for support.