Banking Awareness 49: NBFC- Peer to Peer Lending platform..

Are you willing to know the detailed information about NBFC- Peer to Peer Lending platform? Here is the article which provides you the clean and clear information about the NBFC- Peer to Peer Lending platform.NBFC refers to Non-Banking Financial Company. As we all knew that Peer to Peer Lending platform is the one which connects the verified borrowers who are willing to have a loan to a group of registered lenders and who can spend the same and can get returns on their investments in the form of Monthly EMI's. 

NBFC- Peer to Peer is a registered Non-banking institution which is recognized by the RBI, and it carries out the business of Peer-to-peer leading in India. 

These are some of the Directives of RBI for the Lending Platform, they are:-

  1. A lender will not be able to invest more than INR 10,00,000Lakhs at any given point of time to the Peer to peer platform.
  2.  He can invest about of INR 50,000 for one borrower at any given of time to the Peer-to-peer platform. 
  3. The loan which was taken by the Borrower should not cross the limit of INR 10,00,000 lakhs.
  4. This maturity of loans should not exceed about 36 months. 

Benefits of NBFC- Peer to Peer:- 

 NBFC- Peer to Peer will become a member of all Credit Information companies, and it will submit all the data to them on the regular intervals on a monthly basis. So any of the borrower payment details will not be monitored and recorded.

Peer to Peer business has become a benefit for the Borrowers and Lenders:-

  • According to the Traditional Banking Technique, they want the customers to submit a type of enrollment(or) contract for approving a loan. Whereas Peer to Peer provides the loan without any of these contracts.
  • NBFCs makes convenient for borrowers and lenders to transact continuously on the same platform. 
  • According to the Under-banked population, it has Zero credit and History.
  • It has a High-Interest rate to the Lenders as compared to the returns that they get from the mutual funds.
  • It also has a Lower Interest rate for the borrowers as compared to credit cards.
  • If the amount is re-invested then the amount gets doubled over in a short period of time.