Plan | Prosper | Protect

What is P2P Lending?

Simply put, P2P lending, or peer-to-peer lending is a way that connects people who need to borrow with the people who are willing to lend to these borrowers


Getting into details, it is a crowdfunding method that allows borrowers access to credit without a bank or a financial institution as an intermediary. Well, who does the lending then, you ask? The lenders are people who want to invest their money for a better rate of return than what the bank
typically offers for a plain savings account. So in essence, it is the same lending operation happening without the financial institution acting as an intermediary.

How does it work?

So the role of the financial intermediary isn’t eliminated but rather replaced by another entity known as the P2P platform. The RBI, in 2017, released the Master Directions for P2P platforms under which all P2P platforms have to be registered with the RBI and secure the NBFC-P2P license and also comply with a host of other conditions.


Typically, the P2P platforms function through an online platform that operates as a marketplace for borrowers and lenders to connect. All the necessary due diligence is carried out for both the parties before they are allowed to participate in any borrowing or lending activity.

Who is it ideal for?

P2P lending as an asset class is ideal for someone who is looking to diversify their investments into a non-market linked asset that gives attractive returns. P2P provides a recurring passive income stream and carries a moderate risk profile that is commensurate with the returns on offer

Finzy as a P2P platform

  • A RBI registered NBFC-P2P platform
  • Secure documentation – All agreements are executed in person and are ensured to be legally binding
  • Proprietary and scientific credit algorithm for selecting borrowers that takes into account as many as 130 different parameters
  • Complete transparency and continuous tracking of investments and repayments through visual dashboards

Why does MWF recommend Finzy and P2P as an asset class

  • Diversification – The investment is split across multiple loans to give an optimal risk-return balance
  • Flexibility – You get to choose the borrower profile you want to invest in. Borrowers in the ‘A category’ would yield around 10%-15% returns while those in the ‘B category’ would yield
    around 16%-21% returns
  • Automated process - The investment process and the EMI collection process is completely automated for the investor
  • Compounding benefit – Finzy offers an reinvestment option of the monthly principal and interest repayments, giving investors a benefit of compounding their returns

Finzy Details At A Glance

Risk: Medium

Ideal time frame:

3 Years

Returns: 7.99% (A+ category minimum yield) to 21.99% (B category maximum yield)

Liquidity: Monthly payouts (principal + interest)

Steps to get started

1. Click on the Invest Now tab below
2. You will be redirected to the Finzy platform. Click on Invest Now
3. Register yourself and submit your KYC documents
4. Select borrowers manually or use “finzyPRO+” to create your portfolio
5. Transfer your funds online to a prepaid wallet through a secured escrow mechanism

Looking for something else ? get in touch !