But this concept is comparatively new as its inception ranges back in the year 2005. Notify me of follow-up comments by email. #7. In such lending there is no involvement of any financial institutions and banks and the lenders are free to choose the borrowers whichever they want to give loans. – A Lender investing more than Rs. 1] The applicant company must be registered as a private or public company under the eyes of law and have an objective of doing financial financing of money. These are as follows: a. (i) Companies that are undertaking the business of Peer to Peer Lending Platform as on the date of effect of these directions i.e 4th Oct 2017, shall apply for registration as an NBFC-P2P to the Bank within 3 months from that date. The total duration of maturity of the loan should not exceed 36 months. #2. In India ,the Peer to Peer[P2P] lending business has been extended to 5 billion dollar as per the reports being concerned.Therefore the entrepreneurs and startups business can easily avail loans from this platform without much documentation. In India the business of Peer to Peer lending has evolved with the advent of technology. Shweta Gupta from MUDS is recognized amongst the most-respected, knowledgeable and yes, pocket-friendly as well. #3. Why not give them a call right now at +91 9911222771 and start a conversation immediately. 6] After doing detailed and vigilant verification of the application and documents attached with it , the RBI provides the license certificate to the applicant company . within 15 days from the end of the quarter: – Number and Amount of Loan disbursed and Closed during the quarter, – Number and Loan Outstanding at the end of the quarter. This form of lending money is getting very famous among investors as they get a higher rate of return through the Peer to Peer[ P2P] lending business. In addition to compliances and reporting requirement under the Companies Act and other applicable regulation, an NBFC-P2P is required to report to concerned regional office of the Reserve Bank of India as per RBI directions. Opportunity for NBFC –P2P in India BIATConsultant is leading consultancy company in India providing different kind of registration services , IPR services , Financial and Business Loan , Legal Advisory and more since 2004 . Adequate Information System and maintenance thereof: An NBFC-P2P should establish adequate infrastructure equipped with information technology as the business activities are technology driven. NBFC –Peer to Peer Lending platform (NBFC-P2P) is a type of Non-Banking Financial Company which carries on the business of providing services of Loan facilitation to willing lenders and borrowers through online platform. – Loan Recovery services for Loans originated on the Platform. (v) Terms of grant of in-principle approval:-Within the period of twelve months, the company shall put in place the technology platform, enter into all other legal documentations required and report position of compliance with the terms of grant of in-principle approval to the Bank. Saturday & Sunday: 11:00AM–3:00PM, BIAT Consultant is online portal for BIS Registration , Company Registration , Business Finance , Legal Advisory Services And more …. – Amount of Fund received and held in escrow account separately from Lenders and borrowers. An NBFC- P2P is actually a registered non-banking organization which is recognized by the RBI. Can A Foreign National Start A Business In India Without Being A Resident? Opposite Sector-14, ceases to carry on the business of Peer to Peer Lending Platform in India; or, has failed to comply with any condition subject to which the CoR has been issued to it; or, is no longer eligible to hold the CoR; or, at any time fails to fulfill any of the conditions referred to in paragraphs 5(2)(ii) and 5(2)(v); or. Save my name, email, and website in this browser for the next time I comment. e. Maintenance of Separate Account for Loan disbursements and Collection: All flow of funds originated through the P2P Platforms need to be done through separate Bank account (escrow account) maintained and operated by a Bank promoted trustee. With an increase in the lenders threshold to Rs. 4] The online application form is available at the RBI website. 50 Lacs at any point of time across all platforms to all its borrowers. Startups will get time to do all the necessary filings and obtain NBFC Registration. The Peer to peer lending companies are being regulated through Reserve Bank of India [RBI]and therefore reserve bank of India reserves power for providing lending license to the applicant. The RBI verifies the other conditions of registration i.e. Delhi-110092 , India. Commercial Banks lending process and credit facilitation services are over the counter. The Peer to Peer lending can be defined as a mode of business where a platform in digital form is provided to an individual or an entity for raising loans or fund at certain interest rates and is needed to be paid back as per the specified terms and conditions.The interest rates are either set by the lending organization or after mutual discussion between the borrower and lender etc. – A trust needs to be mandatorily promoted by the Bank. (iii) Every company seeking registration with the Bank as an NBFC-P2P shall have a net owned fund of not less than rupees twenty million or such higher amount as the Bank may specify. a). Companies (Amendment) Act, 2020- Overview of provisions, CBDT further extends due date for filing of ITR for AY 2019-20 to 30-11-2020. Within one month from the date of changes The loans here are available without the borrower having to provide any mortgages. Such companies, which have applied to the Bank for registration as an NBFC – P2P, shall be permitted to continue the business of a Peer to Peer Lending Platform till their application for issuance of CoR is rejected, subject to such conditions, including winding down … Related Topics: Scope of Activities of an NBFC-P2P, Reserve Bank Notification. (iv) validity of the in-principle approval :- The validity of the in-principle approval issued by the Bank will be twelve months from the date of granting such in-principle approval. – It should obtain a certificate of Registration (CoR) from the Reserve Bank of India to carry on the Business of Peer to Peer Lending Platform. (vi) Grant a CoR as an NBFC–P2P :- The Bank may, after being satisfied that the entity is ready to commence operations, grant a CoR as an NBFC–P2P, subject to conditions as deemed fit by the Bank. Essential Documents For Non-Banking Financial Company Registration, Prudential Norms and Operational Guidelines of NBFC – P2P, Applicability of Insolvency and Bankruptcy code, 2016, PLANNING & SETTING UP OF MICRO-FINANCE BUSINESS. Registration and Compliance of Peer to Peer Lending Platform-NBFC. Peer to peer lending operates on a ‘many to many’ lending model through internet intermediaries, also called a lending platform, who arrange and manage the loans. It provides other ancillary services like services of loan recovery services, credit assessment services, profile verification and other related services. Reasons of growing opportunity of P2P NBFC in flourishing Indian Market. Monday—Friday: 9:00AM–5:00PM 1] There is high use of information technology and there is a lack of security as documents can be leaked or information can be wrongly utilized. 2] The documentation is very simple and easy as compared to documents required while taking loan from financial institutions, 3] The fees and other charges required are low as compared to banking institutions. All transactions and fund transfers shall be only through and from Bank Accounts. With this, PaisaDukan became the first new entrant to get a NBFC-P2P license from the RBI. – Change in Authorized signatory on behalf of NBFC-P2P. 3] The applicant company shall have technological , managerial , 4] A pure motive to serve the public and its interest, 6] The board of directors shall fulfill all terms and conditions of RBI, Any company being registered as private or public limited company can apply for the license with the reserve bank of India.They need to fulfill the conditions below –. Peer to Peer (P2P) is a kind of lending or it can be said that it is a online platform to raise loans which are to be given back with interest and there is no involvement of Financial institution, therefore lenders are free to chose borrowers.