A Study on Non Conventional Financing with Special Reference to ‘P2P Lending’ and its Growth during Covid-19 Pandemic in India

  • Arya Gopakumar Assistant Professor, St. Mary’s College, Thrissur, Kerala, India
Keywords: Non-conventional sources of finance, Peer to peer lending, Demonetisation, Digitalisation, Pandemic


The new financial face imploded after the collapse of the so longed conventional system in 2008 after demonetisation, and following covid-19 pandemic, India witnessed a millions of extraordinary debt bearing borrower in all sectors. The instable stock markets, bond prices and devaluation of domestic currency popularized the term dis-intermediation and prompted more investors to turn to a cashless financial system and non-conventional sources funding. With the gradual growth of global market Indian potential investors and borrowers face some financial challenges and this is where these digitalisation and green banking system became an inevitable technology which enabling them to operate more efficiently and at cost advantage than the traditional banking system. Several online portals have sprung up in India to facilitate such lending, especially after demonetisation and some even getting private financing and investments from investors, even it isis still at an emerging stage comparing with US and China. RBI brought a discussion paper on P2P lending in April 2016, it points that there were 30 such start-ups have emerged in the country. After that it have been proceeded as a fast-growing sector and came out with some regulations in October 2017 and this study aims to analyse the mode and operations of the non-conventional lending P2P system and its initial growth during pandemic period.

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