Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
P2P lending and Crowd funding are terms that are slowly but steadily growing in India. It is yet to gather momentum as payments banks or mobile wallets. RBI has started analyzing the model and therefore in this article we shall look at these two concepts.
Following are the points on P2P Lending and Crowd Funding:
Secured loans are sometimes offered by using luxury assets such as jewelry, watches, vintage cars, fine art, buildings, aircraft and other business assets as collateral. They are made to an individual, company or charity. Other forms of peer-to-peer lending include student loans, commercial and real estate loans, payday loans, as well as secured business loans, leasing, and factoring.
The routes that could possibly be explored under Security-Based Crowd funding, are the following:
The Reserve Bank of India (RBI) had floated a consultation paper in April 2016 on the Indian P2P lending that has been taking roots in India. RBI has proposed to register the P2P lending Platforms as Non-Banking Financial Companies (NBFCs).
Further, according to the document, the proposed regulation is proposed to encompass the following:
The prudential requirements will include a minimum capital of INR 2 crore with a prescribed leverage ratio to avoid indiscriminate leverage on the Platforms.
The Platforms will need to submit regular reports on their financial position, loans arranged each quarter, complaints etc. to the Reserve Bank. The Bank may come out with a detailed reporting requirement.
P2P Lending and Crowd funding provide a lot of benefits however these are offered through online portals, it is vital to verify the authenticity and reliability of the website before you move forward for transacting. In case you need more insight into these concepts, contact Enterslice.
Read our article: Peer to Peer Lending Business: Pioneering the Fintech Industry
Are your GAIL India Limited shares now eligible for transfer to the IEPF Authority, or have the...
India's financial sector is changing due to advancements in technology and new regulations. GIF...
The Indian startup ecosystem, which is the third-largest in the world, is expected to become a...
India's startup ecosystem has recently experienced a rapid rise as a global powerhouse. Several...
In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced several changes to the...
Are you human?: 8 + 1 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Foreign Exchange Management Act was enacted by the Indian parliament, and it came into force in 2000. FEMA was...
12 Jul, 2023
The Foreign Exchange and Management Act, 1999 (FEMA) has made mandatory filing of APR or Annual Performance Report...
26 Feb, 2022