Traditional lending involves giving credit or loans to individuals or businesses by banks and other financial institutions.nbsp; Herein, banks and other financial institutions get money to lend further via savings and deposits made by individuals and businesses.
Peer-to-Peer lending bypasses banks and similar intermediaries. It implies direct lending between two peers.nbsp; A peer here can be a person or business.nbsp; P2P lending is typically facilitated by online, digital platforms.
In India, like other formats of lending, P2P lending is also regulated by the Reserve Bank of India (RBI).