A Bangalore-based documentary film-maker had not imagined getting a loan over the weekend to buy a professional camera and fund his holiday. “I was sitting in a café at Koramangala and wondering how to arrange money for my Thailand trip. That’s when a friend told me about P2P loans. I scanned the documents and send them on Friday. The loan was disbursed on Monday. It would have taken a fair amount of time had I approached banks. Plus, they would not entertain a frivolous idea like buying a camera,” recalls Kartik Kannan. 



Peer-to-peer (P2P) loans are catching the attention of youngsters across metros. Easy and quick disbursements are not the only drawing points for P2P companies. The rate of interest offered on the online lending platform is another major draw. 

Vinay Mathews, Founder and COO, Faircent.com, explains why P2P score over banks in the case of short-term loans. “Banks operate via branch models. It’s unviable for them to give small ticket loans that too for smaller duration. In P2P, if the loan is risky, the interest rate is higher for the lender.”