P2P Lending Trends: The Rise of UPI and Female Investors

Digital financial platforms are witnessing a paradigm shift, as highlighted by the P2P Lending Trends Report 2025. UPI has emerged as the dominant payment method amongst lenders, facilitating 91.89% of transactions, far surpassing net banking, IMPS, and debit card methods.

The report by LenDenClub reveals that female lenders are notably more active, deploying average loan amounts of Rs 2.5 lakh, which is four times greater than those lent by men. Lenders are increasingly diversifying their investments across multiple borrowers, an indication of the evolving disciplined lending practices driven by improving financial literacy.

As investors lean towards shorter loan tenures, ranging from 2 to 6 months, financial hubs such as Mumbai and Bengaluru lead in participation. The growing infrastructure for digital transactions, especially UPI, underscores a robust shift towards instant, real-time engagement in the P2P lending sphere.