UPI Dominates Lending Transactions, Report Finds
New Delhi – Unified Payments Interface (UPI) has emerged as the dominant payment method within peer-to-peer lending, accounting for 92 per cent of all transactions on the platform, according to a new report by LenDenClub, an RBI-registered peer-to-peer (P2P) lending platform. This figure significantly surpasses net banking at 3 per cent, IMPS at 3 per cent, and debit cards at 2 per cent. The report analyzed investment activity across more than one lakh lenders.Female Investors Lead in P2P Lending
Female lenders demonstrated a significantly higher investment average compared to male lenders. The 2025 P2P Lending Trends Report revealed that female lenders invested an average of Rs 2.5 lakh, more than four times the average amount lent by men.Diversification Drives Lending Behavior
Approximately 68 per cent of lenders on P2P platforms are utilizing a strategy of lending to multiple borrowers, a clear indication of a shift towards more structured and disciplined lending practices. Investors are typically funding over 200 borrowers, reflecting a strong preference for diversification to manage risk. Nearly 68 per cent of investors have funded more than one loan, highlighting repeat participation and continued engagement.Digital Credit’s Growing Role
As financial awareness increases and investors adopt disciplined diversification strategies, digital credit is expected to become an increasingly important component of modern investment portfolios. The average investment amount on the platform is around Rs 2 lakh, with investors allocating funds across a large number of borrowers.Tenure Preferences and Loan Duration
The majority of investors prefer shorter loan durations, with over 95 per cent of platform loans being of shorter durations for the period of data publication. LenDenClub recently introduced 12-month loan options, which are currently witnessing early demand as retail investors explore more predictable repayment cycles.Geographic Participation Expanding
Participation in P2P lending is expanding beyond major financial centers. The top five metro cities – Mumbai, Bengaluru, Pune, Hyderabad, and Delhi – accounted for nearly 62 per cent of investor contributions on the platform.Mobile Devices Drive Portfolio Management
Most lending transactions are initiated through mobile devices, indicating a clear shift towards real-time and on-the-go portfolio management among investors.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.