P2P Lending
Digital Peer-to-Peer Lending
Access lending opportunities through an RBI-registered NBFC-P2P platform
Peer-to-Peer (P2P) lending is a digital platform-based arrangement that enables lenders and borrowers to connect through an RBI-registered Non-Banking Financial Company – Peer to Peer Lending Platform (NBFC-P2P). The platform facilitates the lending process and maintains relevant transaction records.
Understanding P2P Lending
In P2P lending, a lender provides funds to one or more borrowers through a platform. The borrower repays the loan as per the agreed repayment schedule. Credit assessment, borrower selection, documentation, collection processes, fees, and transaction terms vary between platforms.
How It Works
- Platform Registration: Complete the applicable registration and KYC process with the NBFC-P2P platform.
- Fund Allocation: Funds may be allocated across borrower listings based on platform procedures and lender preferences.
- Loan Disbursement: Loans are disbursed through the platform under the applicable loan agreement.
- Repayment Tracking: Repayment schedules and transaction details can be monitored through the platform.
Important Considerations
- Credit Risk: Borrowers may delay or default on repayment.
- No Assured Returns: Repayment and returns are not guaranteed.
- Platform Risk: The platform is an intermediary and does not guarantee repayment by borrowers.
- Limited Liquidity: Funds are generally committed for the loan tenure and may not be readily accessible.
- Regulatory Limits: P2P lending is subject to RBI regulations and applicable lender and borrower exposure limits.
Important: P2P lending involves credit risk, liquidity risk, and the possibility of loss of principal or delayed repayments. It is not a deposit product and is not covered by deposit insurance. Please read the platform's terms, risk disclosures, fee structure, and applicable RBI guidelines before participating.
Types
Digital Lending Platform
P2P lending transactions are facilitated through an RBI-registered NBFC-P2P platform.
Borrower Assessment
Platforms may assess borrower information and credit profiles as per their internal processes.
Multiple Borrower Exposure
Available funds may be allocated across multiple borrowers, subject to platform processes and lender selection.
Online Transaction Tracking
Lenders can view loan allocations, repayments, and transaction records through the platform.
Defined Loan Tenures
Loans are offered for specified tenures, based on the availability and terms shown on the platform.
Benefits
Lender Registration
Complete the registration and verification process required by the P2P lending platform.
Loan Allocation
Funds may be allocated to available borrower listings according to platform procedures.
Repayment Records
Repayment schedules and received instalments are reflected in the lender's platform account.
Risk Disclosures
Review platform disclosures, borrower risks, fees, terms, and applicable regulatory limits before participation.
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