Prudential Norms and Operational Guidelines of NBFC – P2P

Prudential Norms :-

• NBFC-P2P shall maintain a Leverage Ratio not exceeding 2.
• The aggregate exposure of a lender to all borrowers at any point of time, across all P2Ps, shall be subject to a cap of 10,00,000/-.
• The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of 10,00,000/-.
• The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed  50,000/-.
• The maturity of the loans shall not exceed 36 months.
• P2Ps shall obtain a certificate from the borrower or lender, as applicable, that the limits prescribed above are being adhered to.

Operational Guidelines

(1) NBFC-P2P shall have a Board approved policy in place –

• Setting out the eligibility criteria for participants on it.
• Determining the pricing of services provided by it.
• Setting out the rules for matching lenders with borrowers in an equitable and non-discriminatory manner.

(2) The outsourcing of any activity by NBFC-P2P does not diminish its obligations and it shall be responsible for the actions of its service providers including recovery agents and the confidentiality of information pertaining to the participant that is available with the service providers.

(3) No loan shall be disbursed unless the individual lender/s have approved the individual recipient/s of the loan and all concerned participants have signed the loan contract.

Read Also: What Are Different Types of NBFC and Rules for Filing Returns?

Getting the NBFC P2P registration from RBI is considered quite profitable these days due to their excellent lending model and low risks. However, understanding all the norms and regulations related to NBFC P2P registration and operation could become trickier for entrepreneurs and businessmen. Hence, collaborating with a reputed legal firm becomes necessary to get assistance in the registration process and post-registration compliance norms. These firms have experts who will file the error-free application for registration and take up all the registration formalities on behalf of the business. This saves a lot of work hours and money for the entrepreneurs applying for registration.

It was rightly said by Ralph Waldo Emerson– “Every Wall is a Door”
Thus, take a step forward to open the door for the new FDI norms.

Shweta Gupta from MUDS is recognized amongst the most-respected, knowledgeable, and yes, pocket-friendly as well.

Why not give them a call right now at +919599653306 and start a conversation immediately.