What happen to investor if the loans been default on P2P lending platform (e.g Funding Societies)?

From investors’ perspective platform should take action even if there is delay of 1 day in repayment. Default is triggered once the loan crosses a certain number of days without repayment. For Funding Societies Business Term Loans are considered and property loans are considered to have defaulted if there is no repayment received for 90 days on a particular loan. For invoice financing its 60 days. These norms are framed through best practices, very similar to what banks follow. However, the default categorisation may vary from platform to platform.

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Also, each platform has its own process of dealing with delays and eventually defaults. At Funding Societies the debt collection process starts with follow up by Relationship Managers followed by in-house debt collection and if situation requires then we engage professional debt collection services (similar to banks) and in certain situations even legal action.

Depends on the reason for default.

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If its just a simple delay in payment you are lucky.

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If the company filed for bankruptcy, you might never see your money again.