Is P2P lending in India safe for investors?

P2P platforms (regulated by RBI under NBFC-P2P category) offer 12-18% returns by lending to retail borrowers. Risk: high default rates (15-25% in some platforms), platform risk, no DICGC insurance, and liquidity risk (money locked for 12-36 months). Limit P2P to 5-10% of portfolio. Diversify across 50+ borrowers to manage default risk.