P2P lending companies change tack in bid to become NBFCs

Last October, after the Reserve Bank came out with new regulations for these companies, most of them had almost stopped lending

Peer-to-peer (P2P) lending companies are changing their business model as they migrate to becoming non-banking finance companies (NBFCs).

Last October, after the Reserve Bank (RBI) came out with new regulations for these companies, most of them had almost stopped lending.

RBI had created a special category called NBFC-P2P, in view of the proliferation of P2P entities. While mandating Rs 20 million as minimum net worth, RBI had also imposed a Rs 1-mn cap for individual lending on such platforms.

So far, a couple of these entities have got an NBFC licence from RBI. Faircent says it got the licence about 20 days earlier.