{"id":5080,"date":"2021-05-12T09:46:44","date_gmt":"2021-05-12T09:46:44","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=5080"},"modified":"2023-03-17T09:58:48","modified_gmt":"2023-03-17T09:58:48","slug":"how-to-get-an-nbfc-p2p-license-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/","title":{"rendered":"How to get an NBFC P2P License in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">P2P\nlending is an online platform that permits credit seekers to procure loans from\nlenders in the absence of a mediator. P2P lending associated with the borrowers\nto lenders in no time. It creates a connection between the credit seekers who\ndesire unsecured loans and investors who want to lend their fund to obtain\nhigher interest rate. The Peer to Peer portal aids the participants to shorten\ntheir search option via a data-driven interface and cutting-edge technology.\nScroll down to check more details regarding NBFC P2P License.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8fe7beb85\" class=\"ez-toc-cssicon-toggle-label\"><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><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8fe7beb85\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#Registered_Financial_Platforms\" title=\"Registered\nFinancial Platforms\">Registered\nFinancial Platforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#What_is_the_Eligibility_Criteria_for_Procuring_NBFC_P2P_License\" title=\"What is\nthe Eligibility Criteria for Procuring NBFC P2P License?\">What is\nthe Eligibility Criteria for Procuring 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:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#What_are_the_Conditions_and_Registration_Process_for_NBFC_P2P_License\" title=\"What\nare the Conditions and Registration Process for NBFC P2P License?\">What\nare the Conditions and Registration Process for NBFC P2P License?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#Registration_Process_for_NBFC_P2P_License\" title=\"Registration Process for NBFC P2P License\">Registration Process for NBFC P2P License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#Conditions_for_NBFC_P2P_License\" title=\"Conditions for NBFC P2P License\">Conditions for NBFC P2P License<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#Business_Features_NBFC_P2P_Lending\" title=\"Business\nFeatures: NBFC P2P Lending\">Business\nFeatures: NBFC P2P Lending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/how-to-get-an-nbfc-p2p-license-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registered_Financial_Platforms\"><\/span>Registered\nFinancial Platforms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Such\nplatforms are backed by a comprehensive list of registered borrowers so that\nlenders can pick them accordingly. It allows the lenders to extend the\nportfolio of investment by disbursing funds to numerous credit seekers in small\namounts. Peer to Peer creates a privileged situation for both the borrowers and\nlenders. P2P lending is a tool of credit financing that allows individuals to\nborrow and lend funds in the absence of financial associations. Peer to Peer\nportal does not take advantage of mediator, which essentially saves money for\nthe concerned participants.<\/p>\n\n\n\n<p>Reserve Bank of India governed the P2P lending platforms to safeguard the interest of borrowers and lenders. Companies that are ready to operate such business activity require availing of an NBFC P2P License from the proposed authority without exception. As per the guidelines of RBI, a lender is only permitted to invest up to Rs. 50 lakhs across the P2P platform. Similarly, a credit seeker cannot avail more than Rs. 50,000\/- across Peer to Peer platforms as per the Reserve Bank of India set a loan disbursing limits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Eligibility_Criteria_for_Procuring_NBFC_P2P_License\"><\/span>What is\nthe Eligibility Criteria for Procuring NBFC P2P License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the eligibility criteria for procuring an NBFC P2P License:<\/p>\n\n\n\n<ol><li>A Peer to Peer (P2P) lending\nplatform can only be allocated by registered organizations and active\nNon-Banking Financial Companies (NBFCs)<\/li><li>An entity should secure a\nminimum NOF (Net Owned Fund) of worth Rs. 2 crores to avail the COR\n(Certificate of Registration) for P2P lending business;<\/li><li>If an organization was already\ninvolved with such business before the Certificate of Registration was made\nobligatory. The organization shall fulfil all necessities as drafted by the RBI\n(Reserve Bank of India).<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Conditions_and_Registration_Process_for_NBFC_P2P_License\"><\/span>What\nare the Conditions and Registration Process for NBFC P2P License?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the registration process and conditions for the NBFC P2P License:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_Process_for_NBFC_P2P_License\"><\/span>Registration Process for NBFC P2P License<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>Step\n1:<\/em><\/strong> First, you need to download the form from the\nofficial website.<\/p>\n\n\n\n<p><strong><em>Step\n2:<\/em><\/strong> Once you download the form, fill the form\ncorrectly and arrange all the vital documents.<\/p>\n\n\n\n<p><strong><em>Step\n3:<\/em><\/strong> Then, you have to submit the application for\nCertificate of Registration plus documents to the Department of Regulation,\nRBI, Mumbai.<\/p>\n\n\n\n<p><strong><em>Step\n4:<\/em><\/strong> After submitting the form, the authority\nexamines the application form on different grounds to find out whether the\ncompany is eligible to operate Peer to Peer business or not.<\/p>\n\n\n\n<p><strong><em>Step\n5:<\/em><\/strong> Once the authority satisfied, the authority\nwill approve for twelve months. In this timeline, the applicant has to set up\nthe portal with the required resources and technology without compromising\nquality.<\/p>\n\n\n\n<p><strong><em>Step 6:<\/em><\/strong> The Reserve Bank of India will examine the establishment for compliance. Once fulfilled, the authority will issue the certificate of registration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_for_NBFC_P2P_License\"><\/span>Conditions for NBFC P2P License<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before commencing the business activities, it is compulsory to apply for this license to DNBR of Reserve Bank, Mumbai, in the prearranged application. While estimating the application, Reserve Bank find out whether the application satisfied the following conditions or not:<\/p>\n\n\n\n<ul><li>The entity is an Indian based\nentity and holds the Certificate of Registration (COR);<\/li><li>The organization&#8217;s directors\nfulfil the proper criteria as suggested by the Reserve Bank of India. They\nshould not be unbiased to the interest of the company and the public;<\/li><li>The entity is supported by the\nrequired technological resources to provides services to the participants on\nthe website;<\/li><li>The organization should reserve\nenough capital structure to function the Peer to Peer lending activities in\nIndia;<\/li><li>A secure and strong IT system\nhas already been deployed, or a plan for the same has been defined;<\/li><li>&nbsp;A feasible business plan has been supported to\nconduct business activities;<\/li><li>Meet all the related specified as\nmentioned by the Reserve Bank.<\/li><\/ul>\n\n\n\n<p>Once\nthe Reserve Bank has done with the examination process and ensured all\nconditions are fulfilled, then it grants the in-principle consent. The validity\nis for twelve months from the date of the grant. Within this timeline, the\norganization should deploy the technology platform, arrange all the vital\ndocuments, and submit them to the authority&#8217;s authority concerning compliance.\nThe Reserve Bank, after fulfilled with the response of the applicant grant\nCertificate of Registration as an NBFC P2P.<\/p>\n\n\n\n<p>The RBI made it obligatory for all the P2P entities to procure an NBFC P2P License from the Peer to Peer platform to protect the participant&#8217;s interest. The Reserve Bank of India drafted the provisions in October 2017. All fresh applicants should obtain a provisional NBFC <a href=\"https:\/\/swaritadvisors.com\/peer-to-peer-lending-license\" class=\"text-primary\"><strong>Peer to Peer Lending License <\/strong><\/a>from the Reserve Bank of India to begin activities in this sector.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_Features_NBFC_P2P_Lending\"><\/span>Business\nFeatures: NBFC P2P Lending<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some significant features of P2P lending that you should know before\napplying for an NBFC P2P License in India:<\/p>\n\n\n\n<ol><li>Such lending is a technology-driven platform that is incorporated under the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>;<\/li><li>To operate business activities such as NBFC P2P Lending in India then one has to register on the official website of the RBI to get the NBFC P2P License;<\/li><li>This lending platform also permits the lenders to pick the borrowers from a verified and comprehensive list;<\/li><li>A detailed application must be filed by the applicant to grant this license;<\/li><li>This lending platform is an online activity where a data-driven structure is used for the examination of the proposed participants;<\/li><li>They create a bonding between the lender and borrower in which benefits goes to both of the participants with the business activities of P2P lending.<\/li><\/ol>\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>Peer to Peer got the capability of being the best investment platform than its counterparts. It lacks some aspects such as the mechanism of recovery and limit of disbursal; it still has the strength to turn around the things in forthcoming years. You can also take some help from professionals if you want to start such a business model in India.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/5-important-things-you-must-know-before-borrowing-money-from-p2p-lenders\/\">5 Important Things You Must Know Before Borrowing Money From P2P Lenders<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>P2P lending is an online platform that permits credit seekers to procure loans from lenders in the absence of a mediator. P2P lending associated with the borrowers to lenders in no time. It creates a connection between the credit seekers who desire unsecured loans and investors who want to lend their fund to obtain higher [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":5088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[58],"tags":[638],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/5080"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=5080"}],"version-history":[{"count":17,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/5080\/revisions"}],"predecessor-version":[{"id":12655,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/5080\/revisions\/12655"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/5088"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=5080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=5080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=5080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}