What Is a P2P Business Loan?
Peer-to-Peer (P2P) lending is a form of direct borrowing from individual investors via an online platform, without traditional banks or NBFCs.
Businesses raise money by posting loan requests, and individuals fund them in exchange for interest returns.
👉 P2P = Business Borrower + Retail Lender, connected through a digital marketplace
Key Features of P2P Business Loans
| Feature | Details |
|---|---|
| Loan Amount | ₹50,000 – ₹10 lakhs |
| Tenure | 6 to 36 months |
| Interest Rate | 12% – 24% (based on risk & creditworthiness) |
| Approval Time | 1–3 days (post-verification) |
| Collateral | Typically unsecured |
| Credit Score Needed | 650+ (ideal, but flexible for P2P) |
Why P2P Loans Work for Small Businesses
🔓 Easier Access: Especially if you’re new to credit or have limited bank support
🕒 Faster Process: Entire application happens online
📉 Competitive Rates: Investors compete to offer better terms
💼 Flexible Use: Working capital, stock purchase, hiring, or marketing
📲 Digital Experience: Track application, EMIs, investor details—all in one place
How the P2P Loan Process Works
📝 Apply on a P2P platform (Vizzve can assist with onboarding)
✅ Verification of KYC, credit, and business background
📣 Loan listing becomes visible to multiple retail investors
💰 Once funded, amount is transferred to your account
💸 Repay monthly EMIs through the platform
Risks to Know
❌ Higher Interest if Credit Score is Low
🧾 Strict Repayment Discipline Needed (P2P reports to credit bureaus)
🔁 Early Repayment Penalties on some platforms
Eligibility Criteria
Indian citizen (Age 21–55)
Business must be operational for 1+ year
Minimum turnover: ₹2.5 lakh annually
Valid PAN, Aadhaar, and bank statement
Vizzve Insight
“For a bootstrapped startup or an MSME needing ₹1–2 lakh urgently, P2P loans offer the fastest alternative to bank credit—without jumping through hoops.”
Why Go Through Vizzve Finance?
🤝 Get connected to trusted RBI-approved P2P lenders
📑 We simplify your documentation & loan listing
📞 Dedicated assistance until funds are disbursed
🧠 Advisory on how to present your loan request better
📲 Transparent status updates & repayment tracking
FAQs
Q1: Are P2P loans safe for businesses?
Yes, if done via RBI-registered platforms. Vizzve only works with compliant lenders.
Q2: Do I need collateral?
No, most P2P loans are unsecured.
Q3: Can I take a second P2P loan later?
Yes, if your repayment record is clean and you're eligible.
Published on : 24th July
Published by : SMITA
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