Effectiveness of Peer-to-Peer Lending in Financial Activities- With Special Reference to the Indian Banking System

Dr. K. Deepak

Volume : VIII, Issue : VI, June - 2019

Effectiveness of Peer-to-Peer Lending in Financial Activities- With Special Reference to the Indian Banking System

Dr. K. Deepak

Abstract :

Banking activities are getting more strength after the banking regulation act of 1949 was implemented in India. Banks plays vital role as lender and borrower of public money. There is also Non–banking financial services provides better services to the required customer, there is a need of activity which understands the requirement of different income level of customers. With this there is a platform which makes the lender and borrowers to meet each other and obey the requirements among one another. Peer to Peer lending networks creates an opportunity to both lenders and borrowers to make the contract on the basis of their income generating activity. There are different varieties of customer, who wish to save single rupee by making adjustable contract. Peer to Peer lending is welcoming the borrower to borrow the money from lender at agreed rate of interest. This is one kind of options for the borrower and lender to make little amount of profit and the basis of their method of financial activities. Reserve bank of India (RBI) has given the permission to run these kinds of financial activities in the different region of the country. The Peer to Peer lending activities are getting more famous in the field of self help groups and micro financial activities of the country.