With the interest rates of savings bank accounts as well as fixed deposits on a decline, you will come across multiple investment proposals promising returns higher than what bank deposits give. One such area of interest being advertised these days is peer-to-peer or P2P lending.
Before we go any further on the subject, the most important aspect on P2P lending in India as of now is that it does not have specific regulations. At the same time, it is not illegal either. The Reserve Bank of India (RBI) has taken cognisance of the existence of P2P lending and came out with a consultation paper in April 2016. This is expected to be followed by formal guidelines for the sector, which the companies in the segment are expecting soon.
You might still be attracted to the high returns being advertised if you invest in this market. Read on to know the basics first.
