Question

    A Peer-to-Peer company in India is to be registered as a/an:

    A AIF Correct Answer Incorrect Answer
    B NBFC Correct Answer Incorrect Answer
    C Investment Company Correct Answer Incorrect Answer
    D Trust Correct Answer Incorrect Answer
    E Any of the above Correct Answer Incorrect Answer

    Solution

    A Peer-to-peer lending company is to be registered as an NBFC-P2P with the RBI. The RBI has come out with guidelines to regulate the P2P companies in India. Some of the major guidelines include:

    • Minimum Net owned funds of Rs.2 crore
    • Maximum leverage ratio of 2
    • Maximum exposure of a lender to all borrowers across P2P to be Rs.50 lakh
    • Maximum loans taken by a borrower from all lenders across P2P to be Rs.10 lakh
    • Maximum maturity of loans to be 36 months Maximum exposure of a lender to a single borrower at Rs.50,000

    Practice Next
    ×
    ×