P2P Lending Platforms – Young Generation’s Favorite Choice for Investment!


Having borne everything from recessions to dipping job security, millennials are taking an alternative approach to investment by using peer-to-peer lending platforms as their preferred choice of investment. This article goes into depth about what this smart investment is and why the younger generation prefers taking this route over traditional investment options.

What Is P2P Lending? 

Peer-to-peer (P2P) lending has revolutionized the way people take (and give out) loans. Traditionally, if someone required a loan, they would go to a bank and obtain a loan despite being charged heavy interest rates. P2P lending enables individuals like yourself to take and give loans to other individuals easily. P2P lending platforms like i2iFunding can offer interests up to 30%, which it makes a lucrative investment if you’re looking to create a source of passive income or simply want to put the money you have lying around to good use.

Why Young People opt for P2P Lending? 

  1. Simplicity

Peer to Peer lending platforms makes it easy and hassle-free to invest money. These platforms make use of the Internet to make this investment option available to everyone with a computer or smartphone. Getting started is easy — all you have to do is sign up and start investing! There are many automation options on offer that further simplify the process. The entire lending process is already simplified by eliminating middlemen like banks. That coupled with the automation tools, minimalistic, and user-friendly interfaces.

  1. Diversification

‘Never put all your eggs in one basket’ is a common phrase that cautions us about the risks of putting all your resources in a single investment. Diversification and risk management are some of the most important aspects of investing. Peer to Peer lending makes it easy to diversify your investments. You can choose to give out multiple loans with different return rates and levels of assessed risk. There are several other metrics that investors can use to diversify their investments, such as the duration, amount, and country. This makes it ideal for most people with varying levels of risk tolerance. You can easily tailor your investments to meet your risk tolerance.

  1. Lucrative 

The younger generation has proved to be much less risk-averse than their predecessors. This allows them to explore more lucrative investment options, such as peer-to-peer lending. Previous generations seem to be more likely to invest in a long-term position that involves risk but also has a lower payout. With P2P lending, the payout is better than traditional investment options, but the risk of someone defaulting on the loan lingers. This makes it wise to spread out your capital over several loans so that you can fall back on the others even if one of them defaults. P2P lending platforms offer interests up to 30% which is far more than what banks are able to offer.

  1. No Banks Involved

Having come of age at the peak of the recession and graduating from university when the job market was slouching, has led the younger generation to become less trusting of banks. The fact that there are no banks acting as middlemen when transacting on P2P lending platforms encourages young people to embrace it. P2P lending has lesser overheads than banks as they are all administered online.

  1. Flexibility 

P2P lending platforms offer a lot of flexibility as opposed to traditional investments. You can determine the amount you want to invest, the duration, the risk involved, and the rate of interest. This flexibility is one of the main reasons the young generation fancies peer-to-peer lending. Having control over investments is definitely appealing to young people looking to invest their money. Some platforms allow users to select the people they want to lend them money to as well, which allows lenders to monitor their risk exposure closely.

  1. Compounding Returns

Many peer-to-peer lending platforms also offer the benefit of compounding returns which make the deal much more lucrative. This blows traditional investment options out of the water. This means that your interest is calculated on the principal and any previous interest that was accrued. It is possible to create a stable source of income that can supplement your primary streams of income and provides you with investment security in the event of an unexpected economic downturn. This makes peer-to-peer lending a promising investment even if you are someone who is already well-invested in traditional asset classes and want to branch out to other asset classes that would help you prepare for harsh tides.


Peer-to-peer lending is catching pace with traditional options for investment as younger people are looking for more lucrative investment options that are accessible to them. It allows just about anyone to invest virtually any amount of money they have lying around into creating a passive source of income. P2P lending is a smart investment option for anyone looking to diversify their portfolio and get the most out of their buck.

i2iFunding (RNVP Technology Pvt Ltd.) is a Reserve Bank of India (RBI) registered Non-Banking Financial Company – Peer to Peer Lending Platform (NBFC-P2P) which connects verified individuals to borrow and lend money online without going to a traditional financial institution. This helps the borrowers get personal loans online at attractive interest rates and helps the investors make substantially higher returns.


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