Lesson 4 · Practitioner · Both · 22 min
Marketplace Lending Overview
How marketplace / platform lending allocates credit risk, capital, and customer experience across partners.
Objectives
- ▸Contrast marketplace lending with balance-sheet lending
- ▸Identify disclosure and fairness obligations
- ▸Design waterfall allocation across lenders
- ▸Anticipate collection and NPA handling split
Marketplace lending matches borrowers to capital providers (banks/NBFCs/investors). The platform may underwrite, distribute, or service—or a mix. Clarity on who owns the loan (and NPA risk) is the core product truth.
- Platform as pure distributor / DSA-like.
- Co-lending structures with shared risk.
- Platform balance-sheet NBFC with marketplace funding later.
Key terms
Marketplace lendingCo-lendingLender of recordWaterfallKFSNPA