Alok Kumar Agarwal from Alankit on the Future of Peer-to-Peer Lending in Finance

When you borrow money through a peer-to-peer (P2P) lending platform, once your loan gets enough support from investors, the platform gives you the money. You agree to the terms of the loan, like how much interest you'll pay and when you'll pay it back. Then, you start making regular payments, including interest, back to the lenders. The P2P platform takes care of managing these payments and reduces the risk for investors.

Alok Kumar Agarwal Alankit points out how P2P lending is fair and open to everyone, even small investors. Small and Medium Enterprises (SMEs), which often struggle to get loans from traditional banks, can benefit from P2P lending. Without these alternative lending options, SMEs, being small in size, might struggle to survive. So, they often turn to P2P lending platforms for help.

Investors also like P2P lending because it lets them spread their money across many different loans, which lowers the risk if some borrowers can't pay back. P2P lending is faster and more efficient than traditional banking, making it easier for borrowers to get the money they need quickly. Plus, the interest rates are competitive, making it a good deal for both borrowers and lenders. And, everything is transparent, so both sides know exactly what's going on with the loans.