IndiaP2P launches new product to align with RBI's revised guidelines

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Months after the Reserve Bank of India (RBI) tightened regulations for NBFCs-Peer to Peer Lending Platforms (NBFC-P2Ps), companies like IndiaP2P are positioning these products as medium-to-long-term credit options instead of short-term ones.

 

On Wednesday, the company launched a new version of its offering called the Monthly Income Plan-Plus, which “adheres to the RBI’s updated, faster settlement guidelines for P2P lending.”

 

Lenders on the platform can earn up to 18 per cent per annum interest (net of fees) with monthly payouts, including both principal and interest. Borrowers, meanwhile, gain access to market-competitive rates, the company said.

 

“This update reaffirms our position that P2P lending should be seen as a medium-to-long-term option rather than a short-term, liquid one,” said Neha Juneja, chief executive officer (CEO) of IndiaP2P.

 

Under the RBI’s new guidelines, lenders can continue lending up to Rs 50 lakh, a cumulative amount that they can allocate across all P2P platforms to multiple borrowers.

 

P2P platforms enable lenders to earn interest income, though with the risk of delay or default by borrowers. To mitigate these risks, P2P platforms allow lenders to assess borrower profiles and spread their funds across various loans.