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P2P lending slows as RBI move clouds future of key players

Economic Times · 4m

The peer-to-peer lending industry in India is experiencing a major slowdown after the Reserve Bank of India (RBI) imposed stringent regulatory guidelines. The sector's assets under management (AUM) have dwindled significantly, leading major players like LenDen Club and Liquiloans to halt new loan activities. The crackdown, including fines for regulatory violations, has pushed platforms to reassess their business models, causing uncertainty and a lack of new business. Compliance challenges and bad loan issues further complicate the industry's revival efforts.