Peer to Peer Lending Service in India

Peer to Peer Lending is an online platform that links lenders and borrowers directly. A company that strives to start a P2P Lending business must have Rs.2 Crores Net owned funds and need to get a Reserve Bank P2P License.

What we offer :

  • ROC Business Registration for P2P Object
  • Documentation processing and submission
  • Plan for Company
  • Filing a loan license application for P2P with RBI
  • Model of P2P lending
  • Danger and Legal Consultancy
  • All processing with RBI

Apply Now!

Apply Now!

Peer to Peer Lending License in India

Peer to Peer (P2P) is essentially an online platform that works to raise loans that are to be repaid with intrigue.
The creditor can be either a person or a lawful entity. The online platform may set the cost of funding to be paid on the loans or it may be widely selected between the parties. During the first days of their business, peer to peer lending has become a main and comfortable option for most start-ups and entrepreneurs when they are looking for venture capital. Business people will get money from people on this stage without much of a stretch.

Also, Peer Peer Lending is a plan for obligation financing under which people can lend or borrow money without the addition of any monetary organization as an intermediary. Peer to Peer lending companies is considered by the Reserve Bank of India. They work online thus making P2P lending a cost-effective approach. P2P lending platform is a quick way of lending or borrowing money. It has confirmed profitability for both parties in such a way that lenders can get profit by lending their money at a greater rate of interest while borrowers enjoy the advantage of a lower rate of interest.

P2P lending stages organizations powered by the creativity that are enlisted under the Companies Act. They go around as an aggregator of borrowers and lenders. At the lending level of P2P, lenders and borrowers register on the web themselves. From that point on, the P2P lending platform completes due diligence and affirms the loan/obtain action support applications.

One needs to get a license from the Reserve Bank of India to do a P2P lending service. A legal application is filed with the authority next to the necessary documents by the experts to receive a P2P lending license.

Eligibility According to RBI Guidelines

P2P Lending Forms

P2P Business Model

The model of P2P lending is based on the model of crowd-funding. The majority of P2P lending platforms are structured as fintech companies of the NBFC (Non-Banking Financial Companies). The P2P model is a new credit model for meeting current business credit needs, unlike conventional banking and financial institutions. Faircent, Paisadukaan, Finzy, Rupeecircle, and so on, have a few P2P sites providing services.

The P2P loan provides a forum to merge all kinds of individual investments, high net worth (HNI), Hindu Undivided Families (HUFs), and other non-banking institutions.

Following the P2P business model, an auction is conducted where the lender can request a borrower’s loan requirements and the borrower can either accept or decline the bid. Moreover, the platform can give services such as credit assessment, recovering loans, and so on. The platform regularly co-ordinates the transaction between the lender and the borrower.

Why Choose of Peer to Peer Lending Platform

In reality, many finance-related industries are reshaping themselves from the past few years by implementing new modules and lending services. The P2P lending model has a significant effect on the activities of the global financial industry.

In comparison to the old-style exercise of getting money from banks, the custom-designed P2P lending platform is the best choice as banks put aside long efforts to endorse loans. P2P lending phases can be used instead of going to banks and applying for credits, where we only need to provide critical data from the comfort of our home/office and our advance will be prepared and accepted within hours.

Nature and Scope of P2P Lending Business

How does Peer to Peer Lending Platform Works?

The creditors from the individual financial investors (principal) are willing to lend their own credit to the creditors at an equitable rate of interest on the peer-to-peer lending network.

The profiles of the borrower are displayed on the P2P lending platform from which the borrower can unhindered select the profile of the borrower and lend their money. There are no relations between the moneylender and the buyer. It is not significant.

It is not necessary to receive a complete loan from the proposed borrower; he may be given a measure of what a financial specialist requested (investor). For the remaining sum, at least one lender could offer the credit at the P2P lending point.

Benefits of Peer to Peer Lending over Banks

Steps to get Peer to Peer Lending License

Any business entity whether a private company or a public company is eligible to start a P2P loan business, in order to first need to apply to the RBI for a P2P license. In this regard, they need to achieve the following:

Registration Conditions such as P2P Lending License

To the satisfaction of the above-mentioned circumstances, the RBI provides approval in favor of establishing a P2P lending platform. The authorization will remain valid for 12 months during which the platform must incorporate technology and documentation to take effect. The RBI, after being satisfied that the P2P platform is ready to start operating, may offer CoR as NBFC P2P, subject to conditions deemed appropriate by the bank.

Responsibilities of P2P Lending Companies to Stakeholders

P2P companies have the following responsibilities to their partners:

Mechanism for the Allocation of Funds to Peer Loan Platforms

Submission of Data to Credit Information Companies by the P2P Companies

P2P lending companies are strongly required to become members of Credit Information Companies and submit relevant information to them. These include:

Disclosure Requirements for a P2P Borrowing Business

Peer to Peer Lending Company will be required to disclose the following to the lender:

The mentioned disclosures need to be made to the borrower:

The following information will be disclosed on the Company’s website publicly:

Why Choose Legal Raasta

30+ Offices in India
10+ Years Experience
Economical and Fast
Money Back Guarantee


Frequently Asked Questions

P2P lending or peer to peer lending online loan market network that provides individuals and businesses with borrowing and loaning opportunities.

The P2P lending is done below severe monitoring of the Reserve Bank of India. These firms are enrolled with the RBI under the Companies Act as NBFC.

If you want to join the digital P2P lending platform, you must primarily have net funds of the value of Rs 2 cr.

Yes, the P2P loan company is of course well governed by the Bank of India Reserve and is a virtual platform fully legalized loan process.

The process for securing a peer loan is to Register a company as a public limited firm or a private limited company with the MCA under the Companies Act. Mention your phone number and mail id.

The key approval by the Bank of India Reserve will remain valid for 12 months from the date of approval.

The required documents include CIBIL score, wage bills, bank accounts, returns of income tax, etc.


LegalRaasta was founded on the principle that sophisticated legal and taxation services should be simple, modern, and inexpensive. We can serve our clients more efficiently thanks to cutting-edge practise technology.

By continuing past this page, you agree to our Terms and Conditions Privacy Policy and Refund Policy | Copyright © 2015-2024| All Rights Reserved