Top P2P lending Platforms and Apps in India

Prashanth Kancherla

Apr 24, 2024 | 9 mins read

10 Best P2P lending platforms in India (2024)

If you need a loan, your first thought is generally to apply with a bank or credit union. That is a valid alternative, but borrowers now have considerably more loan options than a traditional bank or credit union can provide. One of these is peer-to-peer lending, which allows borrowers to request a loan from another individual without the need for any financial institutions to act as an intermediary.

Peer-to-peer lending platforms work as marketplaces, allowing borrowers and investors to interact without the need for intermediaries such as banks and NBFCs. It is a win-win situation for both parties, as borrowers may obtain credit with fewer hassles and cheaper interest rates, while lenders can earn larger returns on their investments.

However, there are numerous P2P Lending Apps and Platforms available to borrowers and lenders, making it difficult to choose one. So, in this article, we’ve narrowed down the top ten P2P lending companies to make your decision easier. Read on!

What is P2P Lending?

Peer-to-peer (P2P) lending is a method that involves connecting borrowers and lenders directly without having to depend on the conventional financial institution to control the transactions. It’s an innovative model that provides easier access to credit, potentially lower rates for borrowers, and attractive returns for investors

P2P lending is a good option for borrowers with poor credit ratings who would not be eligible for a loan through a bank. It enables them to secure the finance they require without resorting to exploitative payday lenders. P2P lending is also an effective choice for business owners seeking a loan. The process of lending through p2p lending apps is far faster than applying through a bank, and you might get your funds within a week of approval.

How Does P2P Lending Work?

In P2P lending, an investor has some extra money that they are willing to lend. In return, the investor will earn interest on the loan payments. Here’s a step-by-step explanation of how peer-to-peer (P2P) lending works:

  1. A borrower interested in obtaining a loan visits a P2P lending platform and completes an online application.
  2. The P2P lending platform evaluates the borrower’s application, assesses their risk and credit rating, and assigns an appropriate interest rate based on their creditworthiness.
  3. Once the application is approved, the borrower receives loan options from investors on the platform based on their credit rating and the assigned interest rates.
  4. The borrower reviews the available options and selects the one that suits their needs.
  5. The chosen investor(s) fund the loan amount to the borrower.
  6. The borrower is responsible for making periodic (usually monthly) interest payments and repaying the principal amount at the loan’s maturity.
  7. The P2P lending platform charges fees to both borrowers and investors for facilitating the transaction and providing the necessary services.

Inherent Risks in P2P Lending & How to Mitigate Them  

There are multiple advantages of P2P lending, but it also comes with certain inherent risks that investors and borrowers should consider. For example, a major risk is borrowers failing to repay their loans.

To mitigate this risk, individuals can diversify their investments across multiple borrowers, spreading the exposure and minimizing the risk of defaults on the overall returns. A few other risks associated with P2P Lending are:

  • Liquidity Risk: P2P Lending mainly consists of fixed tenures, and the individuals may not be able to access invested funds until the loan fully matures. To mitigate this risk, the individuals can invest in the emergency funds in a liquid plan.
  • Macroeconomic Factors: This risk is an economic or financial crisis that can impact the borrower’s ability to repay the loans and increase the likelihood of defaults. To mitigate this risk, individuals can diversify their investments across multiple asset classes and industries, which can reduce the impact of such macroeconomic events.
  • Platform Risks: The platform risks are the risks where some P2P platforms may be poorly managed resulting in potential loss of investments of the personal information. To mitigate this risk the individuals should carefully research and invest in different regulated platforms to minimize this type of risk.
  • Regulatory Risks: The regulatory risks are the risks which are involved in the change of regulatory policies and new regulations, which could affect the functioning of the P2P platform. To mitigate this risk, individuals can choose platforms that strictly follow regulatory guidelines.

How Do Taxes Work in P2P Lending?

P2P lending allows investors to earn interest on the amount they lend. Thus, interest income from peer-to-peer lending is taxed, just like interest earned from other instruments such as FDs.

Interest gained via peer-to-peer lending is classed as ‘Income from Other Sources.’ It is added to the lender’s income and taxed at the appropriate tax bracket. So, if someone is in the 30% tax band, he will pay 30% tax on his interest earnings.

Top 10 P2P Lending Platforms 

Now that you have a good understanding of what peer-to peer lending is and how it works, here are some of the top 10 P2P lending companies that you can opt for:

Fair Cent

Fair Cent is India’s leading P2P lending platform to receive a Certificate of Registration (CoR) from the Reserve Bank of India. This platform offers business, personal, and property loans.  Fair Cent is an online lending initiative that brings together potential borrowers and investors. The main objective of Fair Cent is to provide a marketplace for individuals to connect them for credit and institutes willing to lend them access funds. 

Key Features:
  • It is a tech-enabled platform that helps facilitate risk management.
  • This platform is a great option for earning flat returns on investments while also helping to increase portfolio stability.
  • Faircent has a remarkable track record of over 99% on-time loan repayments.


Lendbox is one of the best Peer-to-Peer lending platforms in India where the borrowers and the willing investors together transact on short to medium term personal unsecured loans. Lendbox is licensed by the Reserve Bank of India under the NBFC-P2P model. Unlike other banks and financial institutions, lendbox cuts down the interest rates for the borrowers and increases the investor’s yield by eliminating mediators like commercial banks and so on.

Key Features:
  • This platform mainly offers P2P Lending services with a focus on personal loans.
  • Lendbox provides high-quality debt investments with consistent returns.
  • This platform helps manage all the client loans and repayments in a single place.

Mobikwik Xtra

Mobikwik Xtra is another popular peer-to-peer lending platform that is best for high-interest-rate investments. It is a financial service offered by Mobikwik, an app for digital wallets and payment. Therefore, this platform is mainly based on the investment product, which allows users to earn daily interest at the rate of up to 12% per annum on their investments.

Key Features:
  • This P2P Lending platform allows individuals to invest and withdraw their money anytime without charging any fee.
  • It provides its P2P lending services linked within the Mobikwik Xtra mobile applications. 
  • This platform provides higher interest rates as compared to savings banks and fixed deposits.


Finzy is a famous non-banking financial company which is registered in the Reserve Bank of India. This platform connects the borrowers who are looking for quick personal loans with low rates of interest. Unlike the other platforms, Finzy lets the individuals decide their investment period, risks and amounts. It also offers the individuals a convenient and transparent way to borrow money and investors an opportunity to earn good returns.

Key Features:
  • This platform provides a wide range of loan options like education loans, personal loans, and so on.
  • It also provides an automated repayment system that ensures easy and timely monthly repayments for borrowers.
  • This lending platform employs a rigorous credit assessment process and a risk-based pricing system for the borrowers.


CRED Mint is another famous extension for the popular payment application, which is known as Cred. It is an exclusive peer-to-peer investment in partnership with Liquiloans, which was designed to return up to 9% of the investment in creditworthiness to individuals. This lending platform connects the borrowers directly with the lenders and cuts out the intermediaries and the associated costs.

Key Features:
  • The CRED members can invest or lend up to Rs. 1 to 10 lakh on CRED Mint.
  • The lenders can check the value of their investments daily on the CRED applications.
  • This platform provides returns of up to 9% annually, which is higher than the bank fixed deposits.


Fello is a type of project management P2P Lending platform in India which was designed for team collaboration and also helps in project tracking. This platform helps in centralizing the project pieces of information by integrating with the popular tools like Slack and Google Drive. It also provides an intuitive interface for managing the projects and making smooth communication between the teams.

Key Features:
  • This platform helps visualize workflows and track projects.
  • Fello helps individuals develop, design, and track tasks and deadlines.
  • It also helps provide seamless communication among team members.


India P2P is another popular lending platform that helps to connect the borrowers with the individual leaders. With the help of this platform, borrowers can easily apply for loans with minimal documentation, while the lenders can develop lending profiles. India P2P provides advanced security measures for safe and secure transactions.

Key Features:
  • This P2P Lending platform provides an alternative source of finance for individuals through a secure platform.
  • This platform provides competitive interest rates for the borrowers.
  • India P2P provides multiple investment options for the lenders, thus providing a wide range of loans.

i Lend

i Lend is a popular P2P Lending platform which mainly has an objective to revolutionize India’s credit market. This platform provides a unique borrowing model which allows the investors and borrowers to decide the loan terms. Both the parties in i lend can decide on the loan terms like tenure, principal amount and interest rate.

Key Features:
  • i lend provides loans to individuals in the range from Rs 25000 to Rs 5 lakh.
  • It provides flexible loan tenures in a range from 6 to 36 months.
  • This platform provides interest rates starting from 15% per annum.


LenDenClub is a peer-to-peer lending platform known for its quick loan disbursals. It has a wide range of loan products, including business loans, education loans, and personal loans. LenDenClub provides an interest of up to 15% per annum. This platform mainly allows retail and institutional lenders to fund personal loans to individual borrowers.

Key Features:
  • In this platform, investors can start with as low as Rs. 10,000.
  • This platform provides zero withdrawal fees with funds.
  • It provides options for both monthly payouts and auto-reinvestments.

i2i Funding

i2i Funding is an online platform that mainly connects individuals in India who are looking to borrow money from India and are looking to lend money. Therefore, it is conducted through the analysis of the credit profiles of the borrowers. This platform particularly promises maximum monthly interest rates of up to 30%.

Key Features:
  • This platform provides a free recovery service which helps to minimize the losses in the case of any loan defaults.
  • It employs robust credit risk assessment tools for secure lending and provides a user-friendly interface.
  • It helps in eliminating the need for traditional financial intermediaries.

How Ozonetel is helping lenders deliver a superior experience

Ozonetel’s unified CX platform offers a range of features and capabilities that enable lenders to streamline their operations, improve customer experience, and drive better business outcomes. Also, the products are secured and compliant with regulatory guidelines, ensuring lenders operate within the required framework while providing a secure and trustworthy experience. 

  • Boost Lead Conversion: Choose Ozonetel’s solution to guarantee no lead goes unnoticed. Ensure a swift response to every digital lead with a call within 15 minutes of their inquiry. You can automate lead calling with deep CRM-dialer integration. We have helped brands reduce lead response times by up to 99% enabling them to increase conversion rates by 200%.
  • Seamless Acquisition: Ozonetel helps some of India’s top NBFCs and banks with loan assessment and verification processes. Using our solutions, one of India’s top NBFCs is reaching out to more than 1 million customers every month and also with a 95% reduction in turnaround time.  
  • Accelerate Customer Service Responsiveness: Brands are leveraging Ozonetel’s intelligent multi-level, multi-lingual IVR system to automate a considerable portion of queries. We are also providing a priority IVR and scheduled callbacks to quickly connect high-value clients to agents. Our robust platform can effortlessly handle high call loads and scale when needed.
  • Improve Debt Collection: Many NBFCs struggle to create and maintain processes for identifying delinquent accounts and collecting debts from defaulters. With our solutions, you can reduce loan delinquency by automating EMI and payment reminders, ensuring your customers stay on track. For example, one of India’s top NBFCs utilized Ozonetel’s solutions to automate 5 million personalized loan repayment reminders every month, 50% faster than manual processes.


P2P lending has emerged as a game-changer in the Indian financial landscape, providing an alternative to traditional banking channels for both borrowers and investors. The top P2P lending platforms in India, such as Lendbox, Faircent, Cred Mint, and Finzy, among others, have revolutionized the way individuals and businesses access credit and investment opportunities.

These platforms leverage cutting-edge technology and robust risk assessment mechanisms to facilitate seamless and transparent lending processes. By eliminating intermediaries and directly connecting borrowers with investors, they offer competitive interest rates, flexible repayment options, and a user-friendly experience.

Want to see what Ozonetel can do for your company? Sign up today for a free 21-day trial.

Prashanth Kancherla

Chief Product Officer, Ozonetel Communications

Over the past decade, Prashanth has worked with 3000+ customer experience and contact center leaders...

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