As part of investment in Alternative Investments (normally implies higher risk and higher returns,P2P is one such avenue.
P2P lending means Peer to Peer lending.
Normally, these are short term loans taken by individuals and the quote is generally 1%-2% per month. Please note it is not cheap. 1%-2% per month translates to 12%-24% per year.
The platforms should be regulated by RBI.
The platforms generally does a standard credit checks, so default is generally rare.
Amount given is small and thus the default can be limited.
Still it does have a risk of default and you could lose money.
Many companies, once your investment comes, is diversified to different individuals and even 1 defaults, the others return could give you a better than FD return.
EG- You invest 10000 Rs.
Int is say 13% P.A- so 1300 Rs.
Default rate sat is 5%- 500 Rs.
Net return is 10,000 +1300-500 = 10800 or 800/10000= 8%.
You could start small and diversify and understand the risk before investing.
The following table shows the top P2P lending platforms
in India in 2026: (RBI approved). scroll table to right also
source: investkraft.com
https://www.investkraft.com/blog/list-of-p2p-lending-companies-2026#:~:text=The%20following%20table,App%2Dbased%20platform
Taxation - Income from other sources.
