NBFC (NBFC P2P) Registration in India

The RBI has created a well-designed regulatory framework for peer-to-peer lending companies. Their operating limits are specified, the extent of their operations is designated, and rules are created. Peer to Peer (NBFC P2P) firms are to be managed as Non-Banking Finance Companies-Peer to Peer (NBFC P2P)s under the RBI's 2017 rules.



What is Peer to Peer Lending NBFC P2P?

According to the RBI standards, a 'Peer to Peer Lending Platform' is "an intermediary offering loan facilitation services to participants via online medium or otherwise." Participants are individuals who have engaged into an agreement with an NBFC P2P to lend on it or use its loan facilitation services.

 

NBFC P2P lending is done using the internet platforms of the NBFC P2P lending organisations. These businesses charge a nominal fee for their services. The majority of the loans are modest personal loans that are unsecured (no collateral required).



Types of NBFC

There are two types of NBFC licensing accessible: deposit accepting and non-deposit accepting. If they are Non-Deposit Accepting NBFCs, they will have the suffix ND appended to the end of their name, as in NBFC-ND. Those with assets of Rs.100 crore or more are considered Systematically Important NBFCs. The various types of NBFCs have been labelled in this manner because they can have an impact on the country's capital adequacy. Non-Deposit Accepting Systematically Important Financial institutions are NBFC-NDSIs.

 

Factors as Types of NBFC

In India, this type of NBFC is unusual. Such organisations often acquire loans or advances from lenders at a significantly discounted rate and then adjust the debtor's return schedule to ensure smooth settlement while earning a little profit. A typical bank loan secured by receivables, etc. is not mentioned.

 

An NBFC-Factoring business must have a minimum NOF of Rs. 5 Crore. In addition, its financial assets in the factoring firm should amount for at least 75% of its total assets. Furthermore, its income from the factoring business should not be less than 75% of its entire income.

 

 

 

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