P2P Lending for Borrowers Explained | Loan Approval, BQS, Charges, EMI & Rejection

A P2P personal loan, which you take through a P2P lending platform, works differently from a regular personal loan from a bank, NBFC, credit card provider or loan app. This video takes you through the borrower side of P2P lending in India, including how P2P loan eligibility, assessment and approval work, how the platform screens and assesses borrowers before listing their loan request, how lenders evaluate borrowers before lending, and what factors such as income, expenses, credit score, existing EMIs, repayment capacity and FOIR can affect loan approval. If you are planning to take a personal loan through a P2P platform, your salary and credit score are important, but they are not the only things that can affect your loan approval. Your existing EMIs, monthly expenses, financial obligations and ability to repay the loan also play an important role. We explain how 1 Finance P2P evaluates borrowers using its Borrower Quality Score, or BQS. The assessment looks at your identity and compliance, credit history, income and cash flow, repayment capacity, stability, and behaviour. You will also understand why income alone does not make someone a good borrower. Someone earning ₹10 lakh a month can still have a high financial obligation. This is where your income, expenses, and repayment capacity matter. The video also explains the P2P loan process, how quickly a borrower can be assessed, how much you can borrow across the P2P industry, how loan funding works, how monthly EMI repayment happens, what happens when an EMI is missed, and what charges a borrower needs to pay. We also answer an important question every borrower should ask: Are there any hidden charges in P2P lending? If you want to understand P2P lending, personal loans, loan eligibility, borrower approval, BQS, FOIR, P2P loan charges, EMI repayment, and foreclosure, this chapter will give you a clear picture. FAQ What is P2P lending, and how does it work for borrowers? P2P lending connects borrowers looking for personal loans with lenders who provide the money. The P2P platform facilitates the process and does not lend from its own balance sheet. How can I get a P2P loan in India? A borrower applies for a personal loan and goes through identity, credit, income, and repayment capacity checks. If the application is approved, the loan can be funded by multiple lenders through the P2P platform. What is BQS in P2P lending? BQS stands for Borrower Quality Score. 1 Finance P2P uses BQS to assess the overall quality and repayment ability of a borrower across multiple factors. What is FOIR, and why does it matter for personal loan approval? FOIR stands for Fixed Obligation to Income Ratio. It shows how much of your income is already committed towards existing financial obligations. A high FOIR can reduce your ability to take on another loan because less income is available for a new EMI. How long does P2P loan approval take? At 1 Finance P2P, technology- and system-based checks happen quickly, followed by manual validation. The overall borrower assessment discussed in the video can take around 10 to 12 minutes. Loan disbursal also depends on the loan being funded by lenders. How much can I borrow through P2P lending in India? As discussed in the video, the borrowing limit is up to ₹10 lakh across the P2P lending industry, subject to applicable RBI rules and your existing P2P borrowings. What is the maximum P2P loan tenure? The maximum loan tenure discussed in the video is 36 months. The applicable tenure depends on the loan terms and platform. What is the T plus 1 rule in P2P lending? The T plus 1 rule means funds received into the P2P platform escrow account must be disbursed to the borrower or returned to the lenders within the applicable T plus 1 working day timeline. What charges do P2P borrowers pay? P2P borrowers pay interest and processing fees. Additional charges such as penalty charges for delayed payments or payment bounces and recovery charges may also apply. The applicable charges are provided in the Key Fact Statement, or KFS. Are there hidden charges in P2P loans? The video explains that applicable charges are published upfront. Borrowers should read the KFS carefully to understand the interest, processing fees, and any other applicable charges before accepting the loan. Watch Chapter 1 for the lender side of P2P lending, and stay tuned for Chapter 3, where we cover taxation, regulation, and how P2P lending fits into your overall financial plan. About 1 Finance P2P: www.1financep2p.com 1 Finance P2P is an RBI-registered platform on a mission to make credit accessible and lending rewarding. Built on trust and transparency, we connect verified borrowers directly with a portfolio of lenders, no middlemen, no hidden fees.