India Peer To Peer Lending Market Trends 2025: Size, Share, Growth Rate & Industry Outlook 2033

According to the latest report by IMARC Group, titled "India Peer To Peer Lending Market Report by Business Model (Traditional P2P Model, Marketplace Lending Model), End User (Consumer Credit, Small Business, Student Loan, Real Estate), and Region 2025-2033," the report presents a thorough review featuring the India Peer To Peer Lending Market trends, growth, share, and research of the industry.

Market Size & Future Growth Potential:

The India peer to peer lending market size reached USD 7.53 Billion in 2024 and expects the market to reach USD 42.92 Billion by 2033, exhibiting a growth rate (CAGR) of 21.34% during 2025-2033.

Latest Market Trends:

The peer to peer lending market India is experiencing remarkable transformation driven by the rapid expansion of digital infrastructure across India. With smartphone users exceeding 650 Million and internet subscriptions surpassing 950 Million by mid-2024, digital connectivity is bridging the credit gap for millions of underserved borrowers. P2P lending platforms are leveraging artificial intelligence, big data, and blockchain technology to streamline lending processes, making them more secure and efficient while significantly reducing paperwork and processing time.

The integration of digital payment systems like Unified Payments Interface (UPI) and e-wallets is revolutionizing transaction efficiency, enabling seamless fund transfers between lenders and borrowers. Government initiatives promoting digital banking and financial inclusion are further accelerating platform adoption, particularly in tier 2 and tier 3 cities where traditional banking services remain limited. The rising self-employment rate, which increased to 58.4% in 2023-24 from 52.2% in 2017-18 according to the Economic Survey 2024-2025, reflects the expanding gig economy that increasingly relies on P2P platforms for quick, flexible financing options.

Advanced credit assessment tools using alternative data points are enabling platforms to serve borrowers lacking traditional credit histories. This technological evolution is attracting both retail and institutional investors seeking higher returns compared to conventional deposit instruments, with lenders now able to diversify across multiple borrowers to manage risk effectively.

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Market Scope and Growth Factors:

The scope of the P2P lending market is broadening as digital financial services reach previously underserved populations. With over 30 RBI-registered NBFC-P2P platforms currently operating, the market is witnessing substantial institutional participation alongside retail investors. The sector has facilitated cumulative loans exceeding ₹20,000 crores, with major platforms like Faircent reporting over ₹2,000 crore in facilitated loans and more than 150,000 active registered lenders as of late 2024.

The market's growth trajectory is being shaped by regulatory frameworks that enhance transparency and operational clarity. The Reserve Bank of India has implemented comprehensive guidelines including the Master Directions for NBFC-P2P Lending Platforms, which have been updated multiple times, most recently in February 2025. These regulations mandate strict fund transfer protocols through escrow accounts, prohibit credit enhancements or guarantees, and cap aggregate exposure at ₹50 lakh per lender across all platforms. The RBI's Digital Lending Directions introduced in May 2025 further strengthen consumer protection by mandating transparent disclosure norms, robust grievance redressal mechanisms, and enhanced data privacy standards.

Micro, Small, and Medium Enterprises (MSMEs), comprising over 64 million enterprises in India, face a substantial credit gap estimated between ₹20-25 lakh crore. P2P platforms are emerging as vital alternatives to conventional financial intermediaries for this segment. The platforms are particularly beneficial for gig workers, freelancers, and small entrepreneurs who often struggle with irregular income patterns that make traditional bank loans difficult to obtain.

The growing trust in digital financial services, reinforced by secure online transactions and regulatory oversight, continues to support market expansion. Financial literacy improvements, particularly among millennials and Gen Z users who dominate the platform user base, are driving adoption. The convenience of mobile-first platforms with vernacular interfaces is enabling deeper penetration into semi-urban and rural markets, addressing the geographical limitations of traditional banking infrastructure.

Recent News and Developments:

Fintech platform Cred announced modifications to its peer-to-peer lending product, Cred Mint, in February 2025 to comply with the latest Reserve Bank of India regulations introduced in September 2024. The modifications include enhanced compliance with new onboarding requirements, alignment of investment processes to the updated framework, and implementation of improved risk management and transparency measures.
The Reserve Bank of India intensified scrutiny of P2P lending platforms in December 2024 by issuing a comprehensive 18-point questionnaire to eight financial technology companies including LiquiLoans, Monexo, i2iFunding, and IndiaP2P. The questionnaire covered compliance with updated P2P norms, adherence to the T+1 timeline for fund settlements, flow of funds within firms, and details on cross-selling practices.
LenDenClub launched daily earning loans for peer-to-peer lenders in January 2025, offering daily interest payouts with various loan tenure options. The platform reported a user base exceeding 2 Crores, reflecting strong market traction.
IndiaP2P introduced the Monthly Income Plan-Plus in October 2024, aligning with RBI's revised quicker settlement regulations. The new product offers lenders up to 18% annual interest with monthly payouts including both principal and interest.
Per Annum, a P2P lending platform, launched 'Estates' in April 2025 to enable retail investors to access premium real estate through fractional ownership. With entry points starting at ₹10 lakh, this product expansion demonstrates the diversification of P2P platforms beyond traditional lending.
The RBI issued penalties in August 2024 against several P2P lending platforms for regulatory violations. LenDenClub faced a penalty of ₹1.99 crore, while LiquiLoans was fined ₹1.92 crore for breaches of NBFC-P2P Lending Platform Directions and Guidelines on Digital Lending.
Non-performing assets in the P2P sector crossed ₹1,163 crore in FY24, representing a substantial increase from approximately ₹620 crore in FY22, highlighting the importance of robust underwriting standards and borrower risk profiling.

Comprehensive Market Report Highlights & Segmentation Analysis:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest India Peer To Peer Lending Market Share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.

Segmentation by Business Model:

Traditional P2P Model
Marketplace Lending Model

Analysis by Business Model:

Marketplace lending model stands as the largest component in 2024, holding around 65.8% of the market. This segment's dominance stems from its scalability, investor diversity, and seamless digital integration, allowing platforms to match borrowers and lenders with greater speed and transparency.

Segmentation by End User:

Consumer Credit
Small Business
Student Loan
Real Estate

Analysis by End User:

Consumer credit leads the market with around 75.0% of market share in 2024. The dominance of consumer credit is supported by rising personal financing needs, ranging from medical emergencies and travel to weddings and lifestyle purchases.

Regional Analysis:

North India
South India
East India
West India

In 2024, North India accounted for the largest market share. North India's lead is attributed to its high urban concentration, digital infrastructure, and rising financial literacy across key metropolitan cities such as Delhi, Chandigarh, and Jaipur.

Competitor Landscape:

The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant. Key players in the market include:

Transactree Technologies Private Limited (Lendbox)
Fairassets Technologies Private Limited (Faircent)
Etyacol Technologies Pvt. Ltd (Cashkumar)
LenDenClub
IndiaP2P
i2iFunding
LiquiLoans
Monexo

Explore the Full Report with Charts, Table of Contents, and List of Figures: https://www.imarcgroup.com/india-peer-to-peer-lending-market

Key highlights of the Report:

Historical Market Performance
Future Market Projections
Impact of COVID-19 on Market Dynamics
Industry Competitive Analysis (Porter's Five Forces)
Market Dynamics and Growth Drivers
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
Market Ecosystem and Value Creation Framework
Competitive Positioning and Benchmarking Strategies

Major Advantages of the Report:

This report provides market leaders and new entrants with accurate revenue estimates for the overall market and its key subsegments.
Stakeholders can leverage this report to gain a deeper understanding of the competitive landscape, enabling them to strategically position their businesses and develop effective go-to-market strategies.
The report provides stakeholders with valuable insights into the market dynamics, offering a comprehensive analysis of key drivers, restraints, challenges, and opportunities.

Why Choose IMARC Group:

Extensive Industry Expertise
Robust Research Methodology
Insightful Data-Driven Analysis
Precise Forecasting Capabilities
Established Track Record of Success
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Tailored Solutions to Meet Client Needs
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Note: Should you require specific information not included in the current report, we are pleased to offer customization options to meet your needs.

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