Process for Peer to Peer Lending-NBFC Registration

P2P lending is a debt financing platform that allows individuals to borrow or lend money without any interference of the intermediary financial institutions. All these companies are regulated as per the rules and regulations of Reserve Bank of India.

These companies use the online platform and are beneficial for both the lender and borrowers as borrowers can get loans at low-interest rates while lenders can earn money through the interest higher interest rates offered on the lent money.

Peer to Peer lending company’s uses technology as the main tool for commencing their business activities and are aggregators between the borrowers and lenders. They are registered as per the provisions of Companies Act, 2013 and to commence the P2P business activities in India; the company has to obtain the P2P lending license from the RBI.

It is a full-fledge procedure that requires application filing in a prescribed format along with all the required documents that would be scrutinized by the higher authorities for the issuance of the license. So, let's have a look at the requirements and procedures for obtaining the P2Plending license in India.

An entity registered as a Public limited or Private limited company under the Companies Act, 2013 can apply for P2P lending license India to the Reserve bank of India. For this, the applicant has to follow the below-given procedure:

Step 1: Company Registration:

To obtain the license, the applicant must be registered as a Public Limited company or Private Limited Company in India. The company must have Rs 2 crores net owned funds to commence the P2P business activities.

Step 2: Filing the Application:

To get the P2P lending license in India, an applicant has to file an application in a prescribed format along with a specific fee amount to the RBI. Application is available online on the Reserve Bank of India's official website (COSMOS).

Step 3: Submission of Application:

An applicant has to submit the hardcopy of the downloaded application along with the required documents such as identity proof, registration proof, etc. to the office of the Reserve Bank of India.

Step 4: Issuance of License:

Once the applicant has submitted the hardcopy of the application and documents, it would be scrutinized by the higher authorities. If they are satisfied with the documents and application, a P2P lending license would be issued to the proposed company.

You just have to visit our website Enterslice, and fill your basic details like name, Email Id & Mobile No.