India Peer to Peer Lending Market

India Peer to Peer Lending Market Overview:

The India peer to peer lending market size reached USD 7.53 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 42.92 Billion by 2033, exhibiting a growth rate (CAGR) of 21.34% during 2025-2033. The India peer to peer lending market share is expanding, driven by the rising shift towards online financial solutions for easier and quicker access to credit, along with the growing adoption of advanced algorithms to assess borrowers based on work history and earnings.

India Peer to Peer Lending Market Trends:

Growing digitalization efforts

The rising digitalization efforts are offering a favorable India peer to peer lending market outlook. With the increasing penetration of smartphones and internet services, borrowers and lenders are connecting through digital platforms without the need for traditional banks. According to the International Trade Administration, by mid-2024, the number of smartphone users exceeded 650 Million, while internet subscriptions surpassed 950 Million. Fintech companies are leveraging artificial intelligence (AI), big data, and blockchain technology to streamline the lending process, making it more secure and efficient. Online verification, automated risk assessment, and digital loan disbursals are reducing paperwork and processing time, attracting more users to peer to peer lending platforms. Digital payment systems like unified payments interface (UPI) and electronic wallets (e-wallets) are also making transactions seamless, further driving the demand. The Government’s encouragement for digital banking and financial inclusion is enabling more people to explore digital lending options. Additionally, investors looking for higher returns are employing peer to peer platforms to lend money directly to borrowers. The growing trust in digital financial services, reinforced by secure online transactions and regulatory frameworks, is supporting the market expansion.

Expansion of gig economy

The expansion of the gig economy is bolstering the India peer to peer lending market growth. Because of the rise in the number of freelancers, independent workers, and small entrepreneurs, the need for quick and flexible financing options is high. The Economic Survey 2024-2025 revealed that the proportion of self-employed people in India's workforce rose to 58.4% in 2023-24, up from 52.2% in 2017-18, reflecting the broadening of entrepreneurial activities and a preference for flexible work arrangements. Traditional banks often have strict lending criteria, making it hard for gig workers to secure loans due to their irregular income patterns. The peer to peer lending platforms are filling this gap by offering easy access to credit without the lengthy approval process of conventional banking. Many gig workers need small loans to invest in equipment, expand their services, and manage daily expenses, and peer to peer lending provides a convenient alternative. Digital platforms use advanced algorithms to assess borrowers based on work history, earnings, and credit behavior, making lending more accessible. As remote work and digital freelancing continue to grow, more people are turning to peer to peer lending for financial support, making it an essential part of the expanding gig economy.

India Peer to Peer Lending Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on business model and end user.

Business Model Insights:

• Traditional P2P Model
• Marketplace Lending Model

The report has provided a detailed breakup and analysis of the market based on the business model. This includes traditional P2P model and marketplace lending model.

End User Insights:

• Consumer Credit
• Small Business
• Student Loan
• Real Estate

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes consumer credit, small business, student loan, and real estate.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Peer to Peer Lending Market News:

• In January 2025, LenDenClub, a well known non-banking financial firm operational in India, launched daily earning loans for peer to peer lenders, providing daily interest payouts and various loan tenure options. The platform reported a user base exceeding 2 Crores.
• In October 2024, IndiaP2P introduced a new version of its service named the ‘Monthly Income Plan-Plus’, which complied with the RBI’s revised quicker settlement regulations for peer to peer lending. Creditors using the platform could receive monthly payouts of up to 18% annual interest (after fees), which included both the principal and the interest. This update reinforced their stance that peer to peer lending should be regarded as a medium-to-long-term choice instead of a short-term liquid alternative.

India Peer to Peer Lending Market Report Coverage:

Key Questions Answered in This Report:

• How has the India peer to peer lending market performed so far and how will it perform in the coming years?
• What is the breakup of the India peer to peer lending market on the basis of business model?
• What is the breakup of the India peer to peer lending market on the basis of end user?
• What is the breakup of the India peer to peer lending market on the basis of region?
• What are the various stages in the value chain of the India peer to peer lending market? 
• What are the key driving factors and challenges in the India peer to peer lending market?
• What is the structure of the India peer to peer lending market and who are the key players?
• What is the degree of competition in the India peer to peer lending market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India peer to peer lending market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India peer to peer lending market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India peer to peer lending industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.