Here's how you can reduce your risk in peer-to-peer lending
Updated : May 20, 2019 03:02 PM IST
Fairly new to the financial system, the Reserve Bank of India (RBI) regulates the P2P platforms to protect the interest of the lenders, as well as, the borrowers. In October 2017, the central bank made it mandatory for all P2P companies to apply for licence to continue as a P2P platform.
Most investors on the P2P platforms are mid-age salaried/self-employed individuals, who lend out money to earn attractive returns by taking higher risks compared to financial assets that include mutual funds, etc.
Make sure you have checked the borrower's financial details like average bank balance, quarterly bank balance, income tax return besides the salary or income.
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