P2P Lending

26% of them faced partial losses to their principal amounts, says lending platform

P2P platforms enable lenders to earn interest income, though with the risk of delay or default by borrowers

Norms tightened after flagging regulatory violations by some lending platforms

While there are 26 licensees, only 10-11 players are active in this space, with the industry's assets under management totalling Rs 11,000 crore

Bars credit enhancement; caps aggregate exposure at Rs 50 lakh

Lenders get the benefit of monthly cash flows and control, but they must avoid platforms promising high returns

Around 15 P2P platforms went live, but one-third of them have shut up shop. Analysts say four of them have more than 90 per cent of the market share

Before it is too late, the RBI should come down on practice of renting out the P2P licence and some of them playing fund managers instead of offering a meeting platform to borrowers and the lenders

There has been exponential growth in P2P lending in recent years

Is it a liquid fund? Is it a fixed deposit? Is it a collective investment scheme?

Initiatives to make returns more attractive and spread risks in order to keep the default rate low for individual lenders have spurred interest in this segment once again

Looking for investment options for high returns? P2P lending could get you 9-12% interest rate? Appealing, right? But there are some riders. Let's understand all about peer-to-peer lending.

Limit lending amount and diversify among borrowers

With no upper limit, the interest rates in the platform can go as high as 35 per cent, on a reducing balance

It is a good opportunity for HNIs as returns can be extremely attractive

Some of the players in the sectors are themselves wary of this unregulated interest rate regime

The lender investing more than Rs 10 lakh across P2P platforms will produce a certificate to P2P platforms from a practising Chartered Accountant certifying minimum net-worth of Rs 50 lakh

Apex bank also does away with requirement of escrow accounts run by a bank-promoted trustee for transfer of funds

From RBI's surprise on repo rate to the Reserve Bank raising the lending limit of Peer-To-Peer platforms five-fold, Business Standard brings you the top headlines of the day

At present, borrowing from the P2P platform by a single entity is also limited to Rs 10 lakh. Most micro and small enterprises have loan requirement between Rs 5-25 lakh