P2P Lending

Peer-to-peer (P2P) lending is a method where individuals lend money directly to other individuals or businesses through RBI-regulated online platforms, bypassing traditional banks.

How P2P investment generally works

Online matching: Savers sign up on an RBI-regulated digital P2P platform that connects them with borrowers seeking short-term loans.
Credit checks: The platform reviews each borrower's background and assigns a risk grade and interest rate.
Fund spreading: Lenders can split money across many small loans to help manage concentration risk.
Repayment: Borrowers make monthly principal-and-interest payments back through the platform.

Risk note: P2P lending carries borrower default risk. Returns depend on the credit quality of the underlying borrowers and are not guaranteed by MoneyGrow or by the lending platform.