Mumbai, Mar 23: LenDenClub, an RBI-registered NBFC-P2P and India’s largest peer-to-peer (P2P) lending platform and a subsidiary of Vartis Platforms, has released its latest P2P Lending Trends Report 2025, analysing investment activity across more than one lakh lenders on its platform. The report highlighted about 68% of lenders on peer-to-peer (P2P) platforms lend across multiple borrowers to manage risk, indicating a clear shift towards more structured and disciplined lending behaviour.
Demographic trends indicate that participation is expanding across segments, while higher-value lending continues to come from experienced groups. Investors in the 36–45 and 56+ age groups together contribute over 50% of the platform’s total lending value. While younger lenders, including Gen Z and early-stage professionals, are entering the category at a faster pace, larger allocations continue to be driven by more mature participants.
The platform’s analysis of lending activity indicates that investor participation is expanding both geographically and demographically. During the year, the overall lending amount invested on the platform grew by 341%, while investor participation increased by 437% year‑on‑year. New investor registrations increased by 245%, reflecting growing awareness of P2P lending as an alternative investment category among retail investors.
As per the data, the average investment amount on the platform stands at around ₹2 lakh, with investors typically allocating funds across a large number of borrowers. On average, investors have funded over 200 borrowers, reflecting a clear preference for diversification to manage exposure. Nearly 68% of investors have funded more than one loan, highlighting repeat participation and continued engagement on the platform.
Report highlights, investors contributing more than ₹10 lakh accounted for 77% of the total investment value on the platform. In terms of outcomes, a majority of investors recorded higher annualised returns. Around 82% of investors earned annualised returns above 20%, while 8% earned between 15–20%. A smaller segment of around 3% earned between 10–15%, and about 4% reported returns in the 0–10% range. About 2.14% of investors experienced losses. Overall, more than 90% of investors earned over 15% annualised returns, suggesting that consistent allocation across borrowers and risk segments has supported outcomes for most participants.
In terms of tenure preference, the majority of investors choose shorter durations of 2 to 6 months, as the platform was offering more short-term loans till last year. More than 95% of the platform loans were of shorter duration for the period of data publishing. The platform has recently introduced 12-month loan options, which are currently witnessing early demand as retail investors explore more predictable repayment cycles.
Gender-based trends also highlight differences in participation. While the number of male investors grew faster, women deployed significantly higher capital amounts. In 2025, the average investment amount by male investors stood at approximately ₹60,000, while female investors deployed an average of ₹2.5 lakhs which is over four times higher than their male counterparts. This indicates increasing financial confidence among women participating in digital credit platforms such as P2P lending.
Geographically, participation is expanding beyond major financial centres. The top five metro cities, Mumbai, Bengaluru, Pune, Hyderabad and Delhi, accounted for nearly 62% of investor contribution on the platform. At the same time, about 38% of the investor contribution came from Tier II and Tier III cities, reflecting wider adoption across emerging markets beyond major financial centres. States such as Maharashtra, Karnataka, Telangana, Rajasthan and Uttar Pradesh recorded the highest new user additions during the period.
Digital infrastructure continues to play a key role in enabling participation. UPI remains the most preferred payment method, accounting for 92% of all transactions on the platform. This is followed by IMPS at around 3%, net banking at 3%, and debit cards at 2%. The high share of UPI indicates the growing reliance on instant and convenient transacting systems for participating in lending activity. The report also notes that most lending transactions were initiated through mobile devices, indicating a clear shift toward real-time and on-the-go portfolio management among investors.
Commenting on the trends, Bhavin Patel, Co‑Founder and CEO of LenDenClub, said, “For many years, diversified credit portfolios were largely accessible only to institutional lenders and very wealthy individuals.. Digital platforms are now enabling individual investors to participate in structured credit markets in a more systematic way. What we are seeing today is the early development of retail participation in credit as an asset class. As financial awareness improves and investors adopt disciplined diversification strategies, digital credit could become an increasingly meaningful component of modern investment portfolios.”
The platform recorded strong growth across key metrics in 2025. The platform has facilitated loan disbursements exceeding ₹18,000 crore, manages an active loan portfolio worth ₹1,500 crores, and has over three crore registered users across India.
These trends indicate that digital lending infrastructure is gradually enabling broader participation in credit markets, potentially creating a new channel through which retail capital can support borrowers while offering investors diversified income opportunities within a disciplined risk framework.”
