5paisa.com announces P2P lending on its platform

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Fintech startup 5paisa.com recently launched peer-to-peer (P2P) lending services on its platform which allows the user to lend money between Rs 500- Rs 50 lakhs to several borrowers. The service is entirely digital, lesser risky and more transparent than traditional methods. It allows the lender to use up their idle money and earn interest up to 36% annually.

The company is registered as Non-Banking Finance Company (NBFC) under RBI and aims to make short-term borrowing easier for those in need and help the lenders to gain a few extra bucks. Prakash Gagdani, CEO of 5paisa.com explains that the platform brings traditional lending and borrowing in a modern embodiment. It will also help small businesses to raise capital during the trying times of the world pandemic.

The platform takes up several data points like age, location, earnings, previous loan history among others to screen the borrowers for a lender giving them the chance to make a more informed decision. This reduces the risk for lenders as they can invest in multiple individuals and gain more benefits.

The traditional ways were unorganised and are majorly based on personal relations and trust. Being unauthorised and outside the regulatory framework, P2P lending is way riskier in offline setting. 5paisa.com is serving around 5.5 lakh customers by offering other services like debt, gold, etc. on its platform.

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