Shadow banking's 9-12% returns carry risks
SummaryLoss absorption by platforms through a buffer and easy withdrawals can make customers complacent
Peer-to-peer (P2P) lending is emerging as an alternative investment avenue. With this innovative instrument, you can invest for 6-12 months, at an agreed upon rate of 8-12%. At the end of the tenure, you will get the principal as well as the compounded interest amount. But, what sets P2P lending apart is flexibility, allowing withdrawals whenever you desire, in contrast to traditional bank fixed deposits (FDs).