P2P firms seek RBI relaxation on lending limit

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

A little more than a year after the Reserve Bank of India (RBI) came out with guidelines for peer-to-peer (P2P) lending companies to convert into non-banking finance companies (NBFCs), micro and small enterprises (SME) lending has turned out to be the focus area for these companies.

However, the current regulation does not allow a single lender to lend more than Rs 10 lakh across P2P platforms at a time. This is hampering growth prospects, say P2P players. The association of P2P lenders has sought relaxation in the norm, and requested the RBI to raise the limit to Rs one crore,