{"id":18151,"date":"2020-10-19T16:05:28","date_gmt":"2020-10-19T10:35:28","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=18151"},"modified":"2020-10-19T16:05:30","modified_gmt":"2020-10-19T10:35:30","slug":"nbfc-p2p-license-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/nbfc-p2p-license-in-india\/","title":{"rendered":"How to Avail NBFC P2P License in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">P2P lending is a digitally-driven platform that allows the credit seekers to obtain loans from potential lenders in the absence of the intermediary. Peer to Peer lending linked the borrowers to lenders in no time. It forms a connection between the credit seekers who want unsecured loans and investors who wish to lend their fund to reap higher ROI. The P2P portal helps the participants to narrow down their search option through a data-driven interface and cutting edge technology. In this article, you will come to know everything about the <a href=\"https:\/\/corpbiz.io\/nbfc-registration\"><strong>NBFC<\/strong><\/a> P2P License.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/nbfc-p2p-license-in-india\/#Registered_Financial_Platforms\" >Registered Financial\nPlatforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/nbfc-p2p-license-in-india\/#Eligibility_Criteria_for_Obtaining_NBFC_P2P_License\" >Eligibility Criteria for Obtaining NBFC P2P License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/nbfc-p2p-license-in-india\/#Registration_Process_Conditions_for_NBFC_P2P_License\" >Registration Process &amp; Conditions for NBFC P2P License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/nbfc-p2p-license-in-india\/#NBFC_P2P_Lending_Business_Features\" >NBFC P2P Lending Business Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/nbfc-p2p-license-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registered_Financial_Platforms\"><\/span>Registered Financial\nPlatforms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Such a\nplatform is backed by the exhaustive list of registered borrowers so that\nlenders can choose them accordingly. It permits lenders to extend the portfolio\nof investment by disbursing funds to multiple credit seekers in small amounts.<\/p>\n\n\n\n<p>P2P creates a win-win situation for both\nlenders and borrowers. P2P lending is an instrument of credit financing that\npermits persons to borrow and lend funds in the absence of financial\ninstitutions. P2P portal doesn\u2019t take advantage of intermediary which\ninherently saves a lot of money for the involved participants.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who Regulates the P2P Lending Platform?&nbsp;<\/h3>\n\n\n\n<p>Reserve Bank regulates the P2P lending\nplatforms to protect the interest of lenders and borrowers. Entities that is\nwilling to carry such a business activity need to avail of a license from the\nconcerned authority without exception.&nbsp;<\/p>\n\n\n\n<p>As per Reserve Bank guidelines, a lender is only allowed to invest up to Rs 50 lakh across Peer to Peer platform. Similarly, a credit seeker cannot avail more than 50,000 across P2P platforms according to <em><strong>RBI<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Reserve_Bank_of_India\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> set a loan disbursing limits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Obtaining_NBFC_P2P_License\"><\/span>Eligibility Criteria for Obtaining NBFC P2P License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>A P2P lending platform can only be set up by registered organizations and active NBFCs.&nbsp;<\/li><li>A company must secure a minimum net owned fund of worth Rs 2 crore to avail the COR for Peer to Peer lending business.&nbsp;<\/li><li>If an organization was already engaged with such a business before the registration certificate was made mandatory, then the organization shall satisfy all requirements as drafted by the Reserve Bank.&nbsp;<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/step-by-step-nbfc-registration-procedure\/\">NBFC Registration: Step by Step Procedure<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_Process_Conditions_for_NBFC_P2P_License\"><\/span>Registration Process &amp; Conditions for NBFC P2P License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"772\" height=\"474\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-70.png\" alt=\"NBFC P2P License\" class=\"wp-image-18152\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-70.png 772w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-70-300x184.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/10\/image-70-768x472.png 768w\" sizes=\"(max-width: 772px) 100vw, 772px\" \/><\/figure><\/div>\n\n\n\n<p>NBFC P2P platform before starting the\nbusiness activities must apply for a license to DNBR of Reserve Bank, Mumbai,\nin the predetermined application. While evaluating the application, Reserve\nBank determines whether the applicant meets the following conditions or not:-<\/p>\n\n\n\n<ul><li>The company is an Indian-based\nentity and holds the incorporation certificate.&nbsp;<\/li><li>Directors of the organization\nmeet the fit and proper criteria as laid down by the Reserve Bank. They must\nnot be unbiased to the interest of the public and the company.&nbsp;<\/li><li>The company is underpinned by\nthe required technological resources to renders services to the participants on\nthe portal.&nbsp;<\/li><li>The organization must reserve\nan adequate capital structure to carry out P2P lending activities in\nIndia.&nbsp;<\/li><li>A secure &amp; robust IT system\nhas already been deployed or a plan for the same has been outlined.&nbsp;<\/li><li>A viable business plan has been\nunderpinned to conduct business activities<\/li><li>Meet all the relevant\nstipulated as mentioned by the Reserve bank.&nbsp;<\/li><\/ul>\n\n\n\n<p>Once Reserve Bank completes the\nverification process and ensured all conditions are met then it grants the\nin-principle approval.&nbsp;The validity will remain in existence for 12 months\nonly from the date of the grant. Now within this timeline, the organization\nmust deploy the technology platform, prepared all the legal documents, and\nreport the authority regarding compliance. Then Reserve Bank, after being\nsatisfied with the applicant\u2019s response, grant Registration certification as an\nNBFC-P2P.&nbsp;<\/p>\n\n\n\n<p>RBI made it mandatory for all the peer to peer companies to obtain a license for the P2P platform, to safeguard the interest of the participants. Since the provisions were drafted by RBI in October 2017.&nbsp;All new applicants need to obtain a provisional NBFC <a href=\"https:\/\/corpbiz.io\/peer-to-peer-lending-license\"><strong>Peer to Peer Lending License<\/strong><\/a>  from Reserve Bank to initiates operations in this sector. This will help to curb the P2P player\u2019s activities.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"NBFC_P2P_Lending_Business_Features\"><\/span>NBFC P2P Lending Business Features<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>Following are the key features of NBFC P2P lending that you must know before obtaining an NBFC P2P License<\/strong><\/em><\/p>\n\n\n\n<ul><li>NBFC p2p lending is a\ntechnology-driven platform that is registered under the Companies Act, 2013.<\/li><li>They form a bonding between the\nborrower and lender in which benefits goes to both of the participants with the\nbusiness activity of peer to peer lending.<\/li><li>To carry out business\nactivities like NBFC P2P in India one has to register themselves on the RBI&#8217;s\nofficial website to get the NBFC P2P license.<\/li><li>A detailed application needs to\nbe filled by the applicant to grant the NBFC P2P license.&nbsp;<\/li><li>P2P lending is purely an online\nactivity where a data-driven framework is used for the verification of the\ninvolved participants.&nbsp;<\/li><li>P2P has overcome the\nconstraints related to paperwork, direct negotiation, and disbursement.&nbsp;<\/li><li>This platform allows the\nlenders to choose the borrowers from an exhaustive and verified list.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>P2P certainly got the potential of being the best investment platform than its counterparts. Although it lacks on some fronts such as recovery mechanism and disbursal limit, it still has the potency to turn around the things in upcoming years. Contact the team of <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> if you are willing to get started with such a business model. Our professional will ensure faster turn-around-time and seamless filing for an NBFC P2P License.&nbsp;<\/p>\n\n\n\n<p>With years of experience at the disposal, our experts can help you overcome apparent obstacles that usually sneaked in while encountering the registration process. We will also make sure that your application gets approved in one go instead of several attempts.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/nbfc-peer-to-peer-lending-platform-compliance-and-registration\/\">NBFC-Peer to Peer Lending Platform \u2013 Compliance and Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>P2P lending is a digitally-driven platform that allows the credit seekers to obtain loans from potential lenders in the absence of the intermediary. Peer to Peer lending linked the borrowers to lenders in no time. It forms a connection between the credit seekers who want unsecured loans and investors who wish to lend their fund [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":18173,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[91,1115],"tags":[1125],"acf":{"service_id":"99"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7413,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18151"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=18151"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18151\/revisions"}],"predecessor-version":[{"id":18174,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18151\/revisions\/18174"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/18173"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=18151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=18151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=18151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}