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Interested in P2P lending in India? High return-stable income investment opportunity.

Faircent.com, our P2P advisor, are our guest bloggers for this article and share the industry growth forecast and risk mitigation in place for investors.
April 17, 2024

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Faircent.com, our P2P advisor, are our guest bloggers for this article and share the industry growth forecast and risk mitigation in place for investors.

Industry facts

The peer-to-peer, or P2P lending industry as it is commonly called, valued globally at $64 billion in 2015, has an annual compounded growth rate of 50%. The P2P model in India, kick-started in 2012, is now worth more than INR 250 Cr ($35 million).

RBI regulated the P2P industry in India in October 2017 and Faircent.com became the first platform in May 2018 to be receive the Certificate of Registration as an NBFC-P2P. Regulations protect interest of all stakeholders and have brought credibility to the sector. Even though the P2P industry in India is in its nascent stages, the market is poised to grow into a $5Bn behemoth by 2022, making it an extremely attractive mode of investment for potential investors.

Not sure exactly how P2P works? Read this.

The P2P lending model has established itself as a high ROI investment, protected from market volatility owing to its transparent model. This gives lenders control over where they decide to invest their money. But the benefits of P2P lending don’t stop there. The partnership between Cube Wealth and Faircent makes investing in P2P more simplified. Cube Members pick their investment risk category and Faircent sets up a customised P2P lending portfolio by matching borrowers that fit the profile. No need to vet the borrowers yourself, it is all done by Faircent for Cube Members. You can consult a Cube Wealth coach or download the Cube Wealth App.

The risk involved is much lower

P2P lending platforms have steps to mitigate risk for lenders:

  • legally binding agreements
  • collection of security cheques before disbursement
  • limiting lender investment to 20% of total borrower requirement

The RBI has now passed a mandate which limits the amount an investor can lend to a single borrower through any P2P lending channel at Rs. 50,000.

Defaulting is always a possibility. To mitigate this risk, a lender needs to build a diversified portfolio. A diversified portfolio means spreading small loan amounts across a large number of borrowers from varied profiles. This includes different occupation, gender, location, and risk buckets. It helps spread risk so that the default of one borrower account has a smaller impact on the investor’s entire portfolio.

When investing in P2P via Cube Wealth, a diversified portfolio created on behalf of the investor based on the risk category they select. It’s all part of the Cube Wealth service. For example, a Rs. 50,000 investment will be spread across 30–50 individual loans on behalf of the investor for the most simplified P2P experience available. You can consult a Cube Wealth coach or download the Cube Wealth App.

The return on investment is several points higher

Faircent.com has provisions for background checks through physical verification at home and office. It uses tech-driven credit evaluation to understand a borrowers’ ability to repay the loan. Accordingly, they are assigned various risk buckets with interest rates starting from 9.99% to 60% p.a. Cube Wealth targets P2P loans ranging 12% to 28% for members. P2P lending models provide higher returns than other traditional short term investment options such as a bank Fixed Deposit. Currently, the majority of lenders on Faircent.com are earning gross returns upwards of 20% p.a.

Control over where you’re investing the money

Faircent’s partnership with Cube Wealth means that investors don’t have to go through a borrower’s profile before investing. Instead, an investor in Cube simply picks the risk category they are comfortable with and Faircent takes care of everything else. Faircent uses their algorithm-driven systems to only provision funds to borrowers that meet the investors risk criteria. This makes investment through P2P lending via Cube Wealth much more efficient and less time-consuming. You can consult a Cube Wealth coach or download the Cube Wealth App.


1.P2P is a well regulated industry with RBI safeguards in place to protect all parties as the industry is set for strong growth.

2. P2P is a high-return stable investment opportunity.

3.You can be part of it and have a simple experience with Cube Wealth and investing in P2P.


1. How does P2P lending work?

Ans. P2P lending platforms facilitate the process. Borrowers create loan listings, and investors can choose to fund a portion or all of the loan. Once fully funded, borrowers receive the loan, and investors earn interest.

2. How are interest rates determined in P2P lending?

Ans. Interest rates are typically determined by the P2P platform or may be set through a bidding process where borrowers request loans at specific interest rates, and investors choose to fund them at their preferred rates.

3. Is P2P lending regulated?

Ans. Regulations governing P2P lending vary by country and region. Some areas have established regulatory frameworks to ensure the safety and transparency of P2P lending platforms.

4. Can P2P lending be a source of passive income?

Ans. Yes, P2P lending can generate passive income as investors earn interest on their loans. However, it requires active management and due diligence in selecting loans.


Peer-to-peer (P2P) lending presents an innovative and accessible avenue for both borrowers and investors to meet their financial needs. P2P lending platforms have reshaped the traditional lending landscape by connecting individuals directly, often resulting in more favorable loan terms and investment opportunities. While the industry offers potential benefits, such as higher returns for investors and easier access to credit for borrowers, it's not without risks. Evaluating the credibility of P2P platforms, diversifying investments, and conducting due diligence are essential practices for both lenders and borrowers. As this sector continues to evolve, staying informed about the latest regulations and industry developments is crucial for anyone considering P2P lending as part of their financial strategy.

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