P2P (Peer to Peer) lending institutions are NBFCs which are regulated by RBI. They raise money from investors which is then lent to individuals.
The interest rates range from 8%-10.5% depending on the tenure and liquidity.
P2P investments are short-term in nature and hence the tenure ranges from 0 months (fully liquid) to 36 months. You can opt for a lock-in of as low as 3 months.
The interest rates range from 8%-10.5% depending on the tenure and liquidity.
P2P investments are short-term in nature and hence the tenure ranges from 0 months (fully liquid) to 36 months. You can opt for a lock-in of as low as 3 months.
The money is lent to people working with good companies and having a high credit score of > 700.
Each investor’s money is spread out to atleast 200 people. The average amount loaned is just Rs. 50,000. P2P companies earn a very high interest rate and therefore the have a decent cushion against NPAs.
The minimum investment is Rs. 50,000 while the maximum is Rs. 50,00,000.
Taxation: P2P investments receive income in the form of interest and are thus taxed at the slab rate.
