After pay cuts in corporate sector, youth look to P2P platforms for loans

Amid cuts in salaries in the corporate sector, the demand for loans in peer-to-peer (P2P) lending platforms, which serve mostly subprime borrowers, has increased dramatically.
 

However, with businesses defaulting, lending has significantly slowed.
 

Much of this demand is from young salaried professionals, who are facing pay cuts now.
 

With no upper limit, interest rates in this sphere can go as high as 35 per cent. However, even with high interest rates, many investors are turning down loan proposals.
 

“As there is a lot of delay in salaries, the demand for loans has substantially increased from salaried people, mostly younger professionals