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RBI Raises P2P Lending – Burning Issues – Free PDF Download

 

Q. Consider the following statements with respect to P2P lending companies:-

  1. It is registered under the Companies act, 2013.
  2. It has been given the status of NBFC.
  3. It is regulated by SEBI.

Which of these is/are correct?

A. 1, 2

B. 2, 3

C. 3 only

D. All of the above

WHAT IS P2P LENDING?

  • P2P lending is a crowd-funding model  (online platform)
  • Where people looking to invest their money with  people who want to borrow can do so.

HOW IT IS DIFFERENT FROM A BANK?

  • Unlike a bank where you have a financial  institution lending money.
  • Here the lender can either be an individual like  you or a business or a financial institution.

HOW IT HELPS THE LENDERS & BORROWERS?

  • Lenders getting higher interest by  lending their money.
  • Borrowers get comparatively lower  interest rates.

RATE OF INTEREST & AMOUNT?

  • The interest rate on the loan is not fixed and depends on demand & supply.
  • The lender can give loan up to ₹10 lakh.
  • Reserve Bank of India said in a statement on Developmental and Regulatory Policies issued on  Dec. 5
  • The aggregate exposure of a lender, across all non-banking financial company-peer-to-peer platforms, will be capped at Rs 50 lakh against Rs10 lakh at  present.
  • Since, lenders were restricted to lending only Rs10 lakh each,
  • So they opened several accounts through family members.
  • The cap on exposure of a single borrower, however, remains at Rs 50,000 across all NBFC  peer-to-peer platforms.

HOW IT WILL HELP?

  • As the funding limits have been increased.
  • This will enable peer-to-peer platforms to serve more customers and borrowers

Q. Consider the following statements with respect to P2P lending companies:-

  1. It is registered under the Companies act, 2013.
  2. It has been given the status of NBFC.
  3. It is regulated by SEBI.

Which of these is/are correct?

A. 1, 2

B. 2, 3

C. 3 only

D. All of the above

 

 

 

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