Product comparison
P2P Lending vs Fixed Deposits (FD)
Fixed deposits remain India's comfort investment, while P2P lending targets higher yields by funding verified borrowers. The right choice depends on risk appetite, liquidity needs, and tax planning.
Side-by-side comparison
| Feature | P2P Lending (Bharosa) | Bank Fixed Deposit |
|---|---|---|
| Higher potential returns (12–18%+ p.a.) | Yes | No |
| DICGC deposit insurance (₹5L) | No | Yes |
| Capital at risk (borrower default) | Yes | No |
| Predictable guaranteed rate | No | Yes |
| Monthly EMI cash flow income | Yes | No |
| Premature withdrawal penalty | Partial | Yes |
| Auto-invest wallet allocation | Yes | No |
| Strict borrower KYC on platform | Yes | N/A |
| Suitable for emergency corpus | No | Yes |
| Tax on interest income | Yes | Yes |
Our verdict
Keep emergency funds in FDs. Allocate surplus capital to Bharosa P2P for yield — diversify across many small loans and reinvest EMIs for compounding.