Earn up to 35% Returns on Your Money

P2P (Peer-to-Peer) lending is a method where you directly lend money to verified borrowers through an RBI regulated NBFC-P2P platform. Your funds are pooled and disbursed to multiple borrowers. Borrowers repay monthly EMIs (principal + interest), which flow back to you as monthly returns. The entire process is managed by the platform — you earn without managing any loan yourself.

P2P lending platforms in India are regulated by the RBI as NBFC-P2P entities. Your funds are held in an escrow account by an RBI-appointed Trustee Bank — the platform never directly holds your money. Additionally, your investment is diversified across many borrowers, so even if some borrowers default (NPA), your overall returns remain protected by diversification.

P2P lending typically offers 12–18% p.a. on the ArthOne platform, compared to 6–7% from bank FDs. With monthly compounding and auto re-investment, your effective annual yield is significantly higher. Returns depend on the loan scheme chosen (5, 7, or 14 months), NPA rate, and investment tenure.

The minimum investment is ₹25,000. This amount is automatically diversified across multiple borrowers, reducing your risk. There is no upper limit — and larger amounts are eligible for auto re-investment once monthly returns exceed ₹1,00,000.

NPA (Non-Performing Asset) refers to borrowers who default on repayment. A small NPA percentage (3–10%) is expected and already factored into pricing. Your investment is spread across many borrowers, so a few defaults don't wipe out your gains. Our calculator lets you model different NPA scenarios to see realistic net returns after defaults.

Bank FDs offer 6–7% p.a. with capital protection but your money is locked with no compounding on returns. P2P lending offers 12–18% p.a. with monthly payouts and auto re-investment compounding. The trade-off: P2P carries borrower default risk (NPA), while FDs are DICGC insured up to ₹5 lakhs. P2P suits investors who want higher returns and can hold for 2–10 years.

When your accumulated monthly returns (principal + interest) reach ₹1,00,000 or more, the platform automatically re-invests that amount into a new loan batch. This is how compound growth works in P2P — your returns start earning their own returns. Over a 5–10 year horizon, auto re-investment can multiply your wealth far more than just withdrawing monthly.

Three schemes are available: 5-month, 7-month, and 14-month loan tenures. Shorter schemes (5-month) recycle capital faster, ideal for maximizing re-investment frequency. Longer schemes (14-month) offer more stable predictable returns. For maximum compounding over 5–10 years, the 7-month scheme typically offers the best balance of return speed and stability.

Yes, interest earned from P2P lending is taxable as 'Income from Other Sources' and added to your total income, taxed at your applicable slab rate. TDS may be deducted at 10% if interest exceeds ₹5,000 in a financial year. Unlike equity funds, there is no LTCG benefit. We recommend consulting a CA for accurate tax planning on your P2P income.

P2P loans are not liquid like bank FDs. Once lent to borrowers, you cannot withdraw mid-tenure. However, you receive monthly EMI payouts (principal + interest), so a portion of your capital returns each month. To exit fully, stop re-investment and let remaining loans mature — your full amount typically returns within the scheme tenure (5, 7, or 14 months).

Any Indian resident individual (18+ years, with PAN and Aadhaar) can invest. You need to complete a one-time digital KYC on the platform. NRIs are currently not eligible to invest through RBI-regulated NBFC-P2P platforms. Minimum investment is ₹25,000.