Peer-to-Peer (P2P) lending is redefining how individuals borrow and invest money in India. With the Reserve Bank of India (RBI) introducing regulations in 2017, this fintech segment has become more structured and trustworthy. For investors and borrowers alike, choosing RBI-approved P2P lending platforms ensures safety, compliance, and transparency.
In this article, we will explore the top RBI-approved P2P lending apps in India, how they work, pros and cons, and factors to consider before choosing one. This guide is aimed at helping both new and experienced users make informed financial decisions.
📌 What is P2P Lending?
P2P lending is a form of direct borrowing and lending between individuals through an online platform, without involving a traditional financial institution like a bank.
How it Works:
- Borrowers register and submit loan applications.
- Lenders choose to fund loans based on risk profile and expected returns.
- The platform manages KYC, credit assessment, and EMI collections.
🛡️ RBI Regulations for P2P Lending
In India, RBI regulates P2P lending platforms as NBFC-P2Ps (Non-Banking Financial Companies – Peer to Peer). The guidelines ensure platform integrity, data security, risk mitigation, and operational transparency.
Key RBI Guidelines:
| Regulation | Description |
|---|---|
| Registration | All platforms must be registered as NBFC-P2P with RBI. |
| Lending Cap | ₹50 lakh per lender across all platforms. |
| Borrowing Cap | ₹10 lakh per borrower. |
| Escrow Mechanism | Loan disbursals and repayments go through an escrow account. |
| Due Diligence | Platforms must conduct credit checks and risk profiling. |
✅ List of RBI-Approved P2P Lending Apps in India (2025)
Here’s a curated list of top RBI-registered P2P platforms that are active, trusted, and growing in popularity:
1. Faircent
- Launched: 2014
- Minimum Investment: ₹750
- Return Range: 9% – 28%
- USP: One of India’s oldest and largest P2P platforms.
2. Lendbox
- Launched: 2015
- Minimum Investment: ₹10,000
- Return Range: 12% – 24%
- USP: Offers investments in unique products like salary loans.
3. RupeeCircle
- Launched: 2018
- Minimum Investment: ₹5,000
- Return Range: 14% – 25%
- USP: AI-driven credit scoring and analytics.
4. i2iFunding
- Launched: 2015
- Minimum Investment: ₹5,000
- Return Range: 12% – 18%
- USP: Offers loan loss protection schemes.
5. LenDenClub (InRupee)
- Launched: 2015
- Minimum Investment: ₹500
- Return Range: 10% – 12%
- USP: India’s largest lender base, easy onboarding.
6. Finzy
- Launched: 2016
- Minimum Investment: ₹1,000
- Return Range: 12% – 15%
- USP: Focuses on personal loans with moderate risk profiles.
🧾 RBI-Registered P2P Apps: Comparison Table
| App Name | Launched | Min. Investment | Returns (%) | Special Features |
|---|---|---|---|---|
| Faircent | 2014 | ₹750 | 9 – 28 | Largest platform |
| Lendbox | 2015 | ₹10,000 | 12 – 24 | Salary-linked loans |
| RupeeCircle | 2018 | ₹5,000 | 14 – 25 | AI-driven risk scoring |
| i2iFunding | 2015 | ₹5,000 | 12 – 18 | Risk protection option |
| LenDenClub | 2015 | ₹500 | 10 – 12 | High liquidity |
| Finzy | 2016 | ₹1,000 | 12 – 15 | Seamless UX |
💡 Benefits of Using RBI-Approved P2P Apps
✔️ For Lenders:
- Higher Returns: Better than traditional FDs or savings accounts.
- Diversification: Spread risk across multiple borrowers.
- Automation: Auto-investment tools simplify portfolio management.
✔️ For Borrowers:
- Quick Access: Faster than traditional bank loans.
- Lower Rates: Based on credit profile and negotiation.
- Less Documentation: App-based KYC and digital processes.
⚠️ Risks in P2P Lending
Despite RBI regulations, P2P lending carries certain risks:
| Risk Type | Description |
|---|---|
| Credit Risk | Borrowers may default on payments. |
| Liquidity Risk | You may not be able to exit investments quickly. |
| Platform Risk | Operational failure or technical glitches. |
| Regulatory Risk | Future tightening of norms by RBI. |
To reduce risk, always diversify your investment across multiple borrowers and platforms.
🧠 How to Choose the Right P2P Lending App?
When selecting a P2P platform, consider the following factors:
1. RBI Registration
Only use platforms listed as NBFC-P2P on the RBI’s official site.
2. Transparency
Check for detailed credit reports, borrower profiles, and real-time analytics.
3. Loan Protection
Some platforms offer “loan protection” to cover part of the principal.
4. Track Record
Older platforms like Faircent and LenDenClub have more robust data and tested systems.
5. Ease of Use
Mobile app interface, investment tools, and customer support should be user-friendly.
🔁 Process of Lending via a P2P App
Here’s a typical flow for lenders on an RBI-registered app:
- Sign Up
- KYC & Bank Linking
- Add Funds to Escrow
- Choose Borrowers / Use Auto-Invest
- Earn Monthly EMIs
- Withdraw or Reinvest Profits
This entire journey can be managed via a mobile app, making it ideal for tech-savvy investors.
📲 Top Features to Look for in a P2P App
| Feature | Why It Matters |
|---|---|
| Auto-invest Tools | Saves time and manages risk effectively. |
| Performance Dashboard | Tracks your returns and borrower behavior. |
| Escrow Integration | Ensures RBI-compliant fund transfers. |
| Loan Grading | Helps assess borrower credibility. |
| Default Management | Legal support for loan recovery. |
🔍 Case Study: LenDenClub
LenDenClub is one of India’s most trusted P2P lending platforms. Here’s a quick case study:
- RBI License: Yes (NBFC-P2P)
- Investor Base: Over 25 lakh
- Disbursal Rate: ₹1,000+ crore
- Returns: 10-12% average annually
- Special Feature: InstaMoney for salaried borrowers
Investors have access to both high-return products and low-risk categories, depending on preference.
🏁 Final Thoughts: Is RBI-Approved P2P Lending Right for You?
P2P lending offers a unique combination of high returns and financial inclusion. However, it’s important to assess your risk appetite and do thorough research before committing funds.
✅ Go for RBI-approved apps if you:
- Want better-than-bank returns
- Are comfortable with moderate risk
- Prefer digital and data-driven lending
- Wish to support creditworthy borrowers directly
Always remember: diversification and discipline are key to success in P2P lending.
🔗 FAQs on P2P Lending Apps
Q1. Are P2P lending platforms safe?
Only RBI-registered platforms are considered safe for investment and borrowing.
Q2. Can I withdraw my money anytime?
P2P lending is not fully liquid. Funds are locked until loan maturity unless there’s a resale market.
Q3. Are P2P returns guaranteed?
No. Returns are indicative. There’s always a credit risk involved.
Q4. Do I need to pay tax on P2P returns?
Yes, the interest income is taxable under “Income from Other Sources”.
Q5. Can I lend as a business entity?
Yes. Some platforms allow HUFs, companies, and LLPs to lend.
📚 Conclusion
P2P lending in India is gaining momentum, thanks to RBI’s regulatory framework and the rise of trustworthy digital platforms. By choosing RBI-approved P2P apps, you reduce risk while unlocking new investment avenues.
Whether you’re looking for an alternative investment route or a fast personal loan, P2P platforms offer flexible, digital-first options suited for India’s evolving financial ecosystem.