Citation :

Bhargav K Revankar, Gangamma S Tahashildar, Prashant K Mudhol, Bhargav Desai, 2024. "Awareness of Peer-to-Peer Lending in India" ESP International Journal of Science, Humanities & Management Studies(ESP-IJSHMS)  Volume 2, Issue 1: 82-87.

Abstract :

In the ever-evolving landscape of global economies, the emergence of peer-to-peer (P2P) lending has marked a transformative financial innovation. Operating on web-based platforms, P2P lending bypasses traditional intermediaries, connecting buyers and sellers directly. This study focuses on the nascent trajectory of P2P lending in India, where it has gained momentum by offering cost-effective, expeditious services and lower interest rates compared to conventional bank loans.

The research aims to explore P2P lending awareness in the Indian population, analyzing demographic factors such as age, income, education, and geographic location. The study hypothesizes a significant association between financial literacy and P2P lending familiarity. A comprehensive literature review reveals limited awareness in Oman and Malaysia, emphasizing the need for awareness campaigns and financial literacy programs. Factors influencing P2P lending adoption by farmers and the challenges faced by the industry are also discussed.

The gap analysis underscores a lack of awareness regarding P2P lending platforms among Indians. The research methodology employs non-probability judgmental sampling, utilizing a questionnaire for data collection, and applying the chi-square test for analysis. Findings indicate a significant association between financial literacy and P2P lending familiarity, emphasizing the need for targeted financial education initiatives.

Demographic analysis reveals a predominantly male profile, with respondents aged 18–24 forming the majority. Most participants earn an annual income of less than Rs. 200,000. The study concludes that individuals with higher financial literacy exhibit greater awareness of P2P lending. The research underscores the importance of addressing the awareness deficit in India through targeted financial education and outreach initiatives.

In conclusion, P2P lending contributes to financial inclusion by offering credit access to those underserved by traditional banks. It aids small businesses and supports sustainable initiatives, making it a pivotal player in the evolving financial landscape.

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Keywords :

Peer-to-peer Lending, Financial Literacy, Awareness, India, Financial Inclusion.