Following the global financial crisis, certain market forces at play led the way for a direct lending asset class for investors. Banks, through savings accounts or fixed deposits, provide interest rates of around 6-8%. In contrast, peer-to-peer (P2P) lending in India currently gives a net return of 18-22% to lenders. This is chiefly achieved by connecting lenders directly with borrowers, something which drastically reduces the operational costs.

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