Covid-19: Post paycuts, young salaried look up to P2P platforms for loans

Amidst a spate of pay cuts in the corporate sector,  the demand for loans in Peer to peer (P2P) lending platforms, which mostly cater to subprime borrowers, has increased dramatically. However, with investors facing defaults, lending has significantly slowed down.

Much of this demand is coming from young salaried professionals, who have faced pay cuts in recent days.

With no upper limit, the interest rates in the platform can go as high as 35 per cent, on a reducing balance. However, even with high-interest rates, many investors are turning away the loan proposals.

“As there are a lot of delays