SC to unveil peer-to-peer lending framework

How does P2P help: Through these platforms, a lender can earn interest by lending to borrowers based on their risk appetite. On the other hand, people who need money can borrow at a lower cost, compared with getting a loan from the bank. This is especially so when the borrower cannot show the banks their credit worthiness. At the same time, some of the loan amount by the borrowers can be too small for the banks to make sufficient profits.

KUALA LUMPUR: The Securities Commission (SC) will introduce a framework for peer-to-peer (P2P) lending next year.

This is in line with the growing interest in the development of this area.