Peer To Peer (P2P) Lending Business In India

Name: Muds
Address: 90, Mehrauli-Gurgaon Rd, Industrial Development Area, Sector 16, Gurgaon, 122007, IN
Telephone: 9599653306

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

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NBFC P-2-P Registration

NBFC P-2-P Contracts

NBFC P-2-P RBI Compliances

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.

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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.

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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.

Compare your Options

Particulars	P2P Lending	Fixed Deposits
Returns	18-24 %	6-8%
Diversification Options	More	Less
Interest Rate Risk	Not Present	Present
Portfolio Creation	Allowed	Not Allowed
Freedom of Terms	Yes	No

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.