Peer to Peer (P2P) Lending Business in India

NBFC-Peer to Peer Lending License
Company Registration with ROC with P-2-P Objects
Preparing RBI Application for License
IT and Data Security Policy Framework
End to End Lisoning with RBI
Grant of NBFC License

REQUEST A CALL BACK

Peer to Peer (P2P) lending, also known as social lending/cloud lending is a method to finance debt which enables individuals to lend and borrow money without the involvement of an official financial institution as an intermediary. Basically, it eliminates the need of middlemen involved in the process but is time-consuming. In P2P lending, lenders are free to choose whom to lend and can diversify their options among different borrowers.

Eligibility Criteria for Peer to Peer Lending Registration

Should be incorporated in India
Has necessary technological,entrepreneurial and managerial resources
Has adequate capital structure to carry the business
Directors are fit and proper
Has a plan submitted/implemented for efficient Information Technology System
Submitted viable business plan
Serve Public Interest by the grant of CoR

Document Required

Requirement Of The Documents For Peer To Peer Lendng Registration

Every existing and prospective P2P needs to make an application for registration to the following Address ‘ the Department of Non-Banking Regulation, Mumbai of the Bank’, in the form specified by the Bank along with additional documents. Whereas existing P2P can apply for the peer to peer lending registration within three months from the date these documents were issued.

Get In Touch With Us

Scope Of Activities

Act as an intermediary to the participants
Cannot raise or/under the section 45l(bb) of the companies act 2013
Can not lend on its own
Can not provide/arrange credit enhancement/guarantee
Can not facilitate/ permit any secured lending through its platform
Can not hold on funds received on its balance sheet
Can not sell any other financial product
Can not permit any international flow of funds
Ensure adherence to all applicable legal norms

Limitations

Borrowers who do not have credit history are excluded.
Exposure to defaults from lenders side.
High level of financial sophistication is demanded.
Invades personal privacy of borrowers.
Returns lower than publicly traded index fund.

Frequently Asked Questions on Peer to Peer (P2P) Lending Business in India

What does one mean by ‘platform’ for p2p lending?

Platform for p2b lending is a kind of device which connects the participants to interact with each other.

For how long is approval valid by RBI?

The validity of the in-principle approval by RBI would be 12 months from the date of granting such approvals.

What type of transactions are permitted to transfer the funds?

As per the directions, only bank transfers are allowed to transfer the funds.In other words,no cash transfers can take place.

SCHEDULE YOUR CONSULTATION TODAY

Alternately Call our Legal Expert Now For Free Consultation at +91 7011198909

Compare your Options

Particulars

P2P Lending

Fixed Deposits

Returns

18-24 %

6-8%

Diversification Options

Less

Interest Rate Risk

Not Present

Present

Portfolio Creation

Allowed

Not Allowed

Freedom of Terms

Yes

Our Satisfied Projects

Clients +

Projects +

Success +

Testimonials

Thanks Muds Team for their all round support in successful delivery of services. Their approach is Client Centric and they possess the deep understanding of the Subject

Devender Agarwal

Founder Rgyan

Their Professional Approach blended with personal touch eases out all hassals in the Transaction.

Tanwir Alam

Founder Fincart

We have been working with Muds since 4 years and their service is dependable. I highly recommend Muds in every facets of Business for the hassal free sleep.

Amita Gupta

Company Secretary - Hines

As Trusted by

Transform your Business. Subscribe our Newsletter.

[newsletters_subscribe form=1]