Peer-to-peer (P2P) lending has emerged as a disruptive force in bridging credit gaps, yet its potential to catalyse economic growth in underserved regions remains underexplored. This study examines the impact of P2P lending on enhancing GDP growth and financial inclusion in Northeast India, a region characterised by banking exclusion and infrastructural deficits. Employing a mixed-methods approach, the research integrates primary data from 212 SMEs, borrowers, and lenders with secondary insights from global databases and RBI reports. Key findings reveal a statistically significant correlation between P2P adoption and GDP growth: a 10% increase in P2P transactions corresponds to a 1.2% increase in GDP (β = 0.12, p < 0.05). SMEs utilising P2P loans reported 68% revenue growth over 12 months—26 percentage points higher than bank-dependent counterparts—underscoring the platform’s efficiency in collateral-free financing. However, systemic barriers persist, including regulatory fragmentation (57% of lender concerns), rural internet penetration of 35%, and financial literacy gaps (23% vs. 41% nationally), which hinder equitable adoption. The study advocates for policy harmonisation under a Northeast Fintech Development Authority, broadband infrastructure investment, and targeted literacy programs to unlock P2P’s transformative potential. By contextualising global fintech trends within regional realities, this research advances a Senian framework for inclusive growth, positioning P2P lending as both an economic catalyst and a tool for social equity.
Manjare et al. (Mon,) studied this question.