Emergencies such as medical, rent, advance salary were the main reason for borrowing on peer-to-peer (P2P) platforms in 2019, according to LenDenClub. Education and needs like family functions, home renovations were the other key reasons, according to the P2P lending platform.
63 percent of the borrowers availed credit for emergencies, while 37 percent availed for aspirational needs, the report said.
Bangalore and Mumbai topped the chart for the maximum number of lenders and borrowers respectively on P2P platforms. That was followed by other cities such as Hyderabad, Pune and Chennai, it added.
"Unified Payments Interface (UPI) with 50 percent users topped the chart for loan repayment followed by 47 percent of ECS payment in P2P lending," the report said.
The findings said that 40 percent lenders and 53 percent of borrowers were under the age bracket of less than 30 years. The data revealed that 12 percent of the borrowers and 16 percent of the lenders comprised of women customers.
Customers from business backgrounds topped the chart along with CXOs to mid-managerial level and salaried individuals as investors on the platform.
Tuesdays, Wednesdays and Thursdays were the preferred days by borrowers for a credit application, while the afternoon meal break i.e. 12.00 noon to 1.00 pm was the most preferred time when a majority of the borrowers applied for a loan.
The average percentage of repeat borrowers was 37 percent in which the loan frequency of repeat borrowers was three times, according to LenDenClub.
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