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Rohan Saha
Founder - Burn Inves... • 2d
P2P Lending in India Is Broken and No One Wants to Admit It 😔 The NPA rate in India’s P2P lending space has gone up a lot recently but strangely, many companies and investors are still turning a blind eye. Some platforms have even built their own credit scoring and risk assessment systems which frankly aren’t legally allowed. Yet they continue to operate like nothing is wrong. What is even more concerning is that a large number of borrowers on these platforms have credit scores below 600. And some companies aren’t even transparent about it they just hide that critical detail. The RBI has done a solid job tightening the rules for traditional banks but when it comes to P2P lending there are still loopholes companies are using to their advantage. And no matter how much we try to caution investors many just don’t want to hear it. Look, if someone is chasing higher returns there are safer high risk options like credit risk debt funds or even high yield bonds. Sure, you won’t earn a flashy 30% per year but at least the risk of total loss is lower. P2P lending right now just isn’t safe these platforms are trying to behave like banks without the same responsibilities or regulations and that is dangerous. I said the same thing back in 2024 most people walk away with losses in this space. Honestly, it’s even riskier than stock trading.
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