India's one of the highest-rated legal tax and compliance guidance platform.
4.9 out of 5
(8521+ ratings)
Verified
Siddhu ManojFounder & CEO of Two-LYP Computations Pvt. Ltd.
“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”
Abhishek LohaniDirector at Lohani Learnings
“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”
Chandan Kr. ChaudharyFounder of Creative Minds
“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”
Jayavijaya SJFounder of Agro Farms
“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”
Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
Ramesh LankeFounder of EKnal Technologies
“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”
700+
Businesses Incorporated Every Month
1000+
Ratings Trusted by 2000+ Clients
250+
Professional Network
Why Choose Us
Why Choose Us?
Expert Legal Team
Experienced legal experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
Dedicated Support
Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
Business Growth Tools
Free business resources to fuel your company's success from day one.
24/7 Customer Service
Round-the-clock assistance for all your concerns.
Get Your P2P Lending License Today?
P2P Lending Platforms must be registered as NBFC-P2P with RBI before commencing operations. Don't risk penalties - get licensed with expert support!
Simple Process
Here's How It Works
01
Fill the Form
Simply fill the above form to get started.
02
Call to discuss
Our startup expert will connect with you & complete legalities.
03
Get Your NBFC-P2P License
Our RBI regulatory experts handle the complete P2P Lending License application process from incorporation to CoR.
Pricing
Simple & Transparent Pricing
MOST POPULAR
P2P Lending License Package
From ₹99,999 one-time professional fee
Complete within 7 days
7-day turnaround 100% guaranteed
Free Regulatory Consultation
Company Incorporation Assistance
Business Plan Preparation
Technology Architecture Review
Escrow Bank Arrangement
Complete RBI Application Filing
Director Fit & Proper Compliance
RBI Liaison & Query Resolution
In-Principle Approval Support
Post-Registration Compliance Setup
*Government fees are additional and vary based on company structure
4.9/5 based on 1000+ reviews
Money back guarantee
Secure payment
Top rated service
AI-Powered Platform
Meet IncorpX Nova
Our proprietary AI engine streamlines every step of business setup, from intelligent name suggestions to automated document drafting and compliance tracking.
AI-Powered Business Name Approval Check
Auto-Generated MoA & AoA Drafts
Real-Time Compliance Monitoring
3x Faster Processing Than Traditional CAs
24/7 AI Chatbot + Human Expert Support
NOVA AI
Premium Plan
IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
P2P Lending License (also known as NBFC-P2P registration) is a Certificate of Registration issued by the Reserve Bank of India (RBI) that authorises a company to operate a Peer-to-Peer Lending Platform in India. This license is mandatory for any entity that wishes to provide an online marketplace connecting individual lenders with borrowers for the purpose of facilitating unsecured loans.
The RBI introduced the regulatory framework for P2P lending through the Master Directions - Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017, effective from October 4, 2017. Under this framework, P2P platforms are classified as a distinct category of Non-Banking Financial Company (NBFC) and must obtain a Certificate of Registration from RBI before commencing operations.
Legal Framework
P2P lending platforms are regulated under the RBI Act, 1934 read with the Master Directions - Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017. The directions define NBFC-P2P as a non-banking institution carrying on the business of a peer-to-peer lending platform under Section 45-IA of the RBI Act.
The P2P lending model offers a marketplace approach to credit - individual lenders can diversify their investments across multiple borrowers, while borrowers gain access to credit at potentially competitive rates. The platform's role is strictly limited to that of an intermediary: it matches lenders with borrowers, facilitates credit assessment, manages documentation, and ensures fund transfer through an escrow mechanism. The platform cannot lend from its own funds, provide guarantees, or assume credit risk.
At IncorpX, we provide end-to-end P2P Lending License registration services covering company incorporation, business plan preparation, technology architecture advisory, escrow bank arrangement, RBI application filing, liaison, and post-registration compliance setup. Our team of experienced financial regulatory consultants ensures a smooth and successful registration process.
What is P2P Lending?
Peer-to-Peer (P2P) Lending is a method of financial intermediation where individual lenders provide loans directly to borrowers through an online technology platform, without the traditional involvement of banks or financial institutions. The P2P platform operates as a marketplace - it connects those who have surplus funds (lenders) with those who need credit (borrowers), earning a fee for the intermediary service.
In India, P2P lending platforms are classified as NBFC-P2P (Non-Banking Financial Company - Peer to Peer Lending Platform) and are regulated by the Reserve Bank of India. The platform does not act as a lender itself - it merely facilitates the transaction between the two parties. All fund flows occur through a mandatory escrow account mechanism, ensuring complete segregation of participant funds from the platform's own funds.
The RBI brought P2P lending under formal regulation through the Master Directions issued on October 4, 2017, recognising the growing importance of fintech-driven credit intermediation in India's financial ecosystem. This regulatory framework was designed to protect consumer interests, promote financial stability, and enable orderly growth of the P2P lending sector.
Key Aspects of P2P Lending:
Marketplace Model:
The platform connects lenders and borrowers - it does not lend from its own balance sheet or accept deposits.
RBI Regulated:
All P2P platforms must be registered as NBFC-P2P with the Reserve Bank of India before commencing operations.
Technology-Driven:
Operations are conducted entirely through web/mobile platforms with integrated credit scoring, KYC, and payment systems.
Escrow Mechanism:
All fund transfers between lenders and borrowers must flow through RBI-mandated escrow accounts operated by a bank trustee.
Did You Know?
Operating a P2P lending platform without RBI registration as NBFC-P2P is a criminal offence under the RBI Act, 1934, punishable with imprisonment up to 5 years and monetary fines. RBI has actively issued warnings and taken enforcement action against unregistered P2P platforms operating in India.
Key Regulations for P2P Lending Platforms:
The RBI Master Directions prescribe detailed operational parameters for NBFC-P2P lending platforms. Understanding these regulations is crucial before applying for the license. Here are the key regulatory requirements:
Regulatory Parameter
Requirement
Details
Lender Aggregate Exposure
₹50,00,000 (₹50 Lakh)
Maximum aggregate lending by a single lender across all P2P platforms
Per-Borrower Exposure
₹50,000
Maximum exposure of a single lender to a single borrower across all platforms
Maximum Loan Tenure
36 months
No loan facilitated through the platform can exceed 36 months maturity
Escrow Mechanism
Two escrow accounts
Separate escrow accounts for lender disbursements and borrower repayments, operated by bank trustee
Fund Transfer Timeline
T+1 business day
Funds must be transferred from escrow to recipients within one business day
Credit Guarantee
Prohibited
Platform cannot provide or arrange any form of credit guarantee or assured returns
Net Owned Fund (NOF)
₹2 Crore minimum
Must be maintained at all times; RBI may increase this threshold
Leverage Ratio
2x maximum
Outside liabilities cannot exceed twice the Net Owned Fund
Cross-Selling
Prohibited
Cannot sell financial products other than loan-specific insurance to borrowers
International Transactions
Prohibited
Cross-border lending and borrowing not permitted on P2P platforms
Important Note!
RBI periodically reviews and updates these regulatory parameters. The exposure limits were revised in December 2019 and the framework continues to evolve. Platforms must stay updated with all RBI circulars and amendments to the Master Directions and ensure real-time compliance.
Eligibility & Requirements for P2P Lending License:
To apply for an NBFC-P2P registration with RBI, the applicant must meet the following eligibility criteria:
Must be incorporated as a Company under the Companies Act, 2013 (Private Limited or Public Limited)
Minimum Net Owned Fund (NOF) of ₹2 Crore at the time of application and at all times thereafter
Technology platform capable of facilitating P2P lending operations with adequate security controls
Directors must meet RBI's 'fit and proper' criteria - no wilful defaults, criminal convictions, or adverse regulatory history
Leverage ratio cap of 2x - total outside liabilities must not exceed 2 times the Net Owned Fund
Memorandum of Association must include P2P lending as a principal business object
Detailed business plan with 5-year financial projections demonstrating viability
Arrangement with a scheduled commercial bank for escrow account operations
Permitted & Prohibited Activities for NBFC-P2P:
RBI clearly delineates what a P2P lending platform can and cannot do. Understanding these boundaries is essential for compliance:
Permitted Activities ✓
Prohibited Activities ✗
Match lenders with borrowers based on risk profile and preferences
Lend from own funds or the funds of its promoters/related parties
Conduct credit assessment and credit scoring of borrowers
Provide or arrange any form of credit guarantee or credit enhancement
Facilitate loan documentation and agreement execution
Promise assured returns to lenders or guaranteed principal protection
Perform KYC/eKYC verification of all participants
Accept deposits from lenders or borrowers in its own accounts
Facilitate fund transfer through escrow mechanism
Facilitate or permit international transactions (cross-border lending)
Provide loan recovery and collection services
Cross-sell any financial product (except loan-specific insurance to borrowers)
Display portfolio performance and default rate data
Facilitate secured lending (all loans must be unsecured)
Charge fees for intermediary services to both parties
Hold participant funds in its own bank accounts (must use escrow only)
Note: Violation of any prohibited activity can result in cancellation of the Certificate of Registration, monetary penalties, and criminal prosecution under the RBI Act, 1934. At IncorpX, we help platforms design their business model within the regulatory boundaries to ensure full compliance.
The NBFC-P2P registration with RBI follows a structured multi-stage process. At IncorpX, we handle every step on your behalf. Here's the complete procedure:
Step 1: Incorporate the Company
Register a Private Limited Company or Public Limited Company under the Companies Act, 2013. The Memorandum of Association must include peer-to-peer lending as a principal business object. Ensure minimum two directors with relevant financial services or technology experience. The company must have a registered office in India.
Step 2: Build the Technology Platform
Develop a robust, secure technology platform with web and mobile interfaces, integrated payment gateway, eKYC/Video KYC module, credit scoring algorithms, escrow integration, and data encryption. Conduct a VAPT (Vulnerability Assessment and Penetration Testing) audit through a CERT-In empanelled auditor. Prepare the complete technology architecture document for RBI submission.
Step 3: Apply to RBI for NBFC-P2P Registration
Submit the application to RBI's Department of Non-Banking Regulation along with all prescribed documents - business plan, technology architecture, escrow bank arrangement, directors' declarations, CIBIL reports, and financial projections. IncorpX prepares and files the complete application package ensuring compliance with all RBI requirements.
Step 4: RBI Scrutiny and Due Diligence
RBI conducts thorough scrutiny including background verification of promoters and directors, assessment of business viability, technology review, and compliance with NOF requirements. Be prepared for multiple rounds of queries and clarifications. Our team handles all RBI communication and ensures timely responses.
Step 5: Receive In-Principle Approval
Upon satisfactory review, RBI grants in-principle approval with specific conditions to be fulfilled within a stipulated period (typically 12 months). This is a conditional approval - the company cannot commence P2P lending operations at this stage.
Step 6: Comply with All Conditions
Fulfil all conditions in the in-principle approval including finalising escrow bank arrangements, completing the technology platform, implementing grievance redressal, appointing key personnel, conducting final VAPT audit, and submitting compliance report to RBI. IncorpX coordinates all compliance activities.
Step 7: Obtain Final NBFC-P2P Certificate of Registration
After RBI verifies compliance with all conditions, the final Certificate of Registration (CoR) as NBFC-P2P is issued. The platform can now commence peer-to-peer lending operations. Display the CoR prominently on your platform and begin ongoing compliance reporting.
Get your NBFC-P2P Certificate of Registration with IncorpX!
What Are the Documents Required for P2P Lending License?
The RBI application for NBFC-P2P registration requires comprehensive documentation. Here's a detailed list of all required documents:
Category
Document
Details
Company Documents
Certificate of Incorporation
Issued by MCA under Companies Act, 2013
Memorandum & Articles of Association
Must include P2P lending as principal business object
Board Resolution
Authorising NBFC-P2P application to RBI
Business Planning
Business Plan
Detailed plan covering operations, revenue model, and growth strategy
Financial Projections
5-year projections including revenue, expenses, capital adequacy, and NOF
Revenue Model Documentation
Fee structure, pricing strategy, and break-even analysis
Technology
Technology Architecture Document
Platform design, security controls, data flow, APIs, and scalability plan
VAPT Audit Report
From CERT-In empanelled auditor covering web, mobile, and API security
Escrow
Escrow Bank Arrangement Letter
Agreement/letter from a scheduled commercial bank for escrow account operations
Director Documents
Fit & Proper Declarations
Self-declarations from each director as per RBI prescribed format
CIBIL/Credit Reports
Individual credit reports of all directors and key promoters
Identity & Address Proof
PAN, Aadhaar, passport, and current address proof of all directors
Financial Documents
Audited Financial Statements
Latest audited balance sheet and P&L (if company has been operating)
NOF Certificate
CA-certified Net Owned Fund certificate confirming ₹2 Crore minimum
Compliance Documents
KYC/AML Policy
Draft policy for customer identification, verification, and anti-money laundering
Grievance Redressal Policy
Draft grievance handling mechanism with escalation matrix and timelines
Technology Requirements for P2P Lending Platform:
The technology infrastructure is a critical component of the NBFC-P2P application. RBI requires the platform to demonstrate robust, secure, and scalable technology capabilities:
1. Platform Architecture
Secure web and mobile application with responsive design, multi-layer architecture, API-driven microservices, and horizontal scalability to handle growing transaction volumes.
2. Payment Gateway Integration
Integration with RBI-licensed payment gateways for seamless fund collection from lenders and EMI collection from borrowers. Support for NEFT, RTGS, UPI, and NACH mandates.
3. Escrow Mechanism
Real-time integration with bank escrow accounts for automated fund routing - lender disbursements through Escrow 1 and borrower repayments through Escrow 2 with T+1 settlement.
4. Credit Scoring Engine
Proprietary or third-party credit assessment algorithms integrating bureau data (CIBIL, Experian, CRIF), bank statement analysis, and alternative data for borrower risk profiling.
5. KYC/eKYC Integration
Integration with UIDAI for Aadhaar-based eKYC, PAN verification via NSDL, Video KYC capability, and CERSAI registration for comprehensive identity verification of all participants.
6. Data Security & Privacy
End-to-end encryption (AES-256), SSL/TLS for all communications, data masking, access controls, audit trails, and compliance with IT Act 2000 and RBI data localisation norms.
7. VAPT Audit
Mandatory Vulnerability Assessment and Penetration Testing by CERT-In empanelled auditor covering OWASP Top 10, API security, network security, and mobile app security. Annual renewal required.
8. Business Continuity
Disaster recovery plan with data backup, geo-redundant hosting, defined RPO/RTO targets, and business continuity testing. Cloud infrastructure must comply with RBI outsourcing guidelines.
Escrow Account Mechanism for P2P Lending:
The escrow account mechanism is the cornerstone of the P2P lending regulatory framework. RBI mandates a strict fund flow structure to ensure complete segregation of participant funds from the platform's own funds:
Aspect
Escrow Account 1 (Lender's Escrow)
Escrow Account 2 (Borrower's Escrow)
Purpose
Receives funds from lenders for disbursement to borrowers
Collects repayments (EMIs) from borrowers for distribution to lenders
Operated By
Bank-promoted trustee
Bank-promoted trustee
Fund Flow
Lender → Escrow 1 → Borrower's bank account
Borrower → Escrow 2 → Lender's bank account
Settlement Timeline
T+1 business day
T+1 business day
Platform Access
Instruction-only (cannot withdraw funds)
Instruction-only (cannot withdraw funds)
The P2P platform's own funds must be kept completely separate from participant funds at all times
The escrow accounts must be operated by a trustee promoted by a scheduled commercial bank
Funds cannot remain in escrow accounts for more than T+1 business day
The platform can only issue instructions to the escrow trustee - it cannot directly access or withdraw funds
Complete audit trail of all escrow transactions must be maintained
Escrow arrangement must be documented in a formal tripartite agreement (platform, trustee, bank)
Post-Registration Compliance for NBFC-P2P:
After obtaining the Certificate of Registration, NBFC-P2P platforms must adhere to ongoing compliance requirements prescribed by RBI:
Audited financial statements by qualified Chartered Accountant; submission to RBI
NOF Maintenance
Continuous
Net Owned Fund must be maintained at ₹2 Crore or above at all times
Disclosure Norms
Continuous
Default rates, historical returns, portfolio performance data must be displayed on platform
Grievance Redressal
Continuous
Designated nodal officer, escalation matrix, and 30-day resolution timeline
VAPT Audit
Annual
Annual vulnerability assessment and penetration testing by CERT-In empanelled auditor
KYC/AML Compliance
Continuous
Customer due diligence, transaction monitoring, and suspicious transaction reporting
NBFC Returns Filing
Monthly/Quarterly
DNBR returns, ALM statements, and other prescribed NBFC filings
Benefits of Obtaining a P2P Lending License:
Obtaining an RBI-registered NBFC-P2P license positions your platform for credibility, growth, and sustainable operations in India's rapidly expanding fintech ecosystem:
RBI Regulatory Trust
An RBI Certificate of Registration provides unmatched credibility with lenders, borrowers, investors, and banking partners. It signals regulatory compliance and operational integrity.
Investor Confidence
Venture capital and private equity firms strongly prefer investing in RBI-licensed platforms. The CoR unlocks access to institutional funding and strategic partnerships.
Banking Partnerships
Licensed platforms can establish escrow arrangements with top banks, integrate payment gateways, and access co-lending opportunities that are unavailable to unlicensed entities.
Scalable Business Model
The marketplace model allows scalable growth without capital-intensive balance sheet expansion. Revenue scales with transaction volume while credit risk stays with participants.
Consumer Protection
RBI's regulatory framework builds trust among retail lenders and borrowers through mandatory disclosures, escrow mechanisms, and grievance redressal - driving user adoption.
Competitive Moat
The rigorous licensing process creates a significant barrier to entry. Licensed platforms enjoy a regulatory moat that protects against unregistered competition and builds long-term value.
Join India's growing P2P lending ecosystem with IncorpX!
Related Services for P2P Lending Platforms
Beyond NBFC-P2P registration, IncorpX offers a comprehensive suite of regulatory and business services for fintech companies. Explore our related services:
Register your Non-Banking Financial Company with RBI for lending, investment, or asset finance operations. Complete NBFC-ICC, NBFC-MFI registration support.
Obtain RBI authorisation for operating payment gateway or payment aggregator services. Essential for fintech platforms processing digital transactions.
Register your Housing Finance Company with NHB/RBI for home loan and housing credit operations across India.
Frequently Asked Questions About P2P Lending License
Getting an NBFC-P2P registration from RBI involves multiple stages and regulatory requirements. We've compiled detailed answers to the most commonly asked questions about P2P Lending License in India to help fintech entrepreneurs and promoters navigate the process confidently.
These FAQs cover everything from eligibility and capital requirements to technology infrastructure, escrow mechanisms, and post-registration compliance. Whether you're launching a new P2P platform or converting an existing entity, these answers provide actionable guidance.
P2P (Peer-to-Peer) lending is a form of online marketplace lending where individual lenders are directly matched with borrowers through a technology platform. The P2P platform acts purely as an intermediary - it does not lend from its own funds. Regulated by the Reserve Bank of India (RBI) under the Master Directions - NBFC-P2P Lending Platform (Reserve Bank) Directions, 2017, the platform facilitates credit assessment, documentation, and fund transfer between parties through an escrow mechanism.
P2P lending platforms in India are regulated by the Reserve Bank of India (RBI) under the NBFC-P2P category. The RBI issued the Master Directions - Non-Banking Financial Company - Peer to Peer Lending Platform (Reserve Bank) Directions, 2017 on October 4, 2017, establishing the regulatory framework. All P2P platforms must obtain a Certificate of Registration (CoR) from RBI as an NBFC-P2P before commencing operations.
The minimum Net Owned Fund (NOF) requirement for an NBFC-P2P is ₹2 Crore as prescribed by RBI. This means the company must have a minimum net worth of ₹2 Crore at the time of application and must maintain this threshold at all times. The NOF is calculated as paid-up equity capital plus free reserves minus accumulated losses, deferred revenue expenditure, and intangible assets.
A P2P lending platform must be incorporated as a company under the Companies Act, 2013 - either as a Private Limited Company or a Public Limited Company. Partnership firms, LLPs, proprietorships, and other business structures are not eligible for NBFC-P2P registration. The company's Memorandum of Association must include P2P lending as one of its main objects.
RBI has prescribed strict exposure limits: a lender cannot lend more than ₹50,00,000 (₹50 Lakh) in aggregate across all P2P platforms. Additionally, the exposure of a single lender to a single borrower cannot exceed ₹50,000 across all P2P platforms. These limits are designed to protect individual lenders from excessive concentration risk and ensure diversification of lending portfolios.
As per RBI Master Directions, the maximum loan tenure on P2P platforms is 36 months (3 years). Platforms cannot facilitate loans with a maturity period exceeding 36 months. This restriction ensures that P2P lending remains within the short-to-medium term credit segment and does not compete with traditional long-term banking products.
No. A P2P platform is strictly prohibited from lending from its own funds. The platform can only act as an intermediary or marketplace connecting lenders with borrowers. It cannot assume any credit risk, provide or arrange credit guarantees, or facilitate secured lending. All fund transfers must happen through the prescribed escrow account mechanism - the platform cannot hold participants' funds in its own accounts.
RBI mandates that every P2P platform must maintain two separate escrow accounts operated by a bank-promoted trustee:
Escrow Account 1 (Lender's Escrow): Receives funds from lenders for disbursement to borrowers
Escrow Account 2 (Borrower's Escrow): Collects repayments from borrowers for distribution to lenders
Funds must be transferred within T+1 business day, and the platform's own funds must be kept completely separate from participant funds.
The complete NBFC-P2P registration process typically takes 6 to 12 months, depending on the completeness of the application and RBI's processing timeline. The process involves two stages: first, in-principle approval (3-4 months), during which the applicant must build the technology platform and comply with all conditions; then, final Certificate of Registration (3-6 months after meeting all conditions). At IncorpX, our RBI liaison team ensures faster processing through meticulous documentation.
RBI requires P2P platforms to have a robust technology infrastructure including:
Secure web/mobile platform with encryption (SSL/TLS)
Integrated payment gateway and escrow mechanism
eKYC/Video KYC integration with UIDAI/NSDL
Credit scoring and risk assessment algorithms
Data security and privacy compliance (IT Act, 2000)
VAPT (Vulnerability Assessment and Penetration Testing) audit
Business continuity and disaster recovery plan
The technology architecture must be submitted to RBI as part of the application.
Post-registration compliance includes:
Quarterly reporting to RBI in prescribed format
Annual statutory audit and submission of audited financials
Filing NBFC returns as prescribed by RBI
Maintaining NOF of ₹2 Crore at all times
Mandatory disclosure of default rates, returns data, and portfolio performance on the platform
Grievance redressal mechanism with designated nodal officer
Annual VAPT audit of technology infrastructure
KYC/AML compliance for all participants
No. P2P platforms are strictly prohibited from providing any credit guarantee or credit enhancement. The platform cannot guarantee repayment of loans, promise assured returns to lenders, or arrange any insurance product to cover default risk. The entire credit risk must be borne by the lender. This is a fundamental principle of the P2P lending model as envisioned by the RBI Master Directions.
Currently, P2P platforms in India cannot facilitate international transactions. Only Indian residents with valid PAN and bank accounts can participate as lenders or borrowers on P2P platforms. Cross-border lending and borrowing are prohibited under the current RBI framework. NRIs and foreign nationals looking to invest in Indian fintech may explore other regulated investment channels.
RBI has prescribed a leverage ratio cap of 2 times (2x) for NBFC-P2P companies. This means the total outside liabilities of the NBFC-P2P company cannot exceed twice its Net Owned Fund. Since the platform does not lend from its own balance sheet, this cap primarily applies to the company's own operational borrowings and liabilities, ensuring the platform remains financially stable.
P2P platforms must make comprehensive disclosures including:
Overview of the credit assessment/scoring methodology
Historical default rates across different risk categories
Actual returns earned by lenders across different maturity profiles
Details of the escrow account arrangement
Fee structure and all charges levied
Portfolio performance data
Grievance redressal mechanism
These disclosures must be prominently displayed on the platform's website.
Operating a P2P lending platform without RBI registration is illegal and punishable under the RBI Act, 1934. Penalties include imprisonment up to 5 years, fines, or both. RBI can also issue cease-and-desist orders, freeze bank accounts, and initiate criminal proceedings. It is absolutely essential to obtain the Certificate of Registration (CoR) before commencing any P2P lending activities.
No. As per RBI Master Directions, P2P platforms are prohibited from cross-selling any product except for loan-specific insurance products to borrowers (for credit life cover). The platform cannot sell mutual funds, insurance, deposit products, or any other financial product to its participants. This restriction ensures the platform remains focused on its core intermediary function.
RBI assesses directors on multiple parameters:
Financial integrity: No willful default, NPA exposure, or adverse credit history
Criminal record: No conviction or pending criminal cases
Regulatory compliance: Not associated with entities whose license was rejected/cancelled
Professional competence: Relevant experience in financial services, technology, or related sectors
CIBIL score: Individual credit reports of all directors must be satisfactory
Directors must submit annual declarations and RBI can direct removal of directors not meeting criteria.
Key differences:
NBFC-P2P acts purely as an intermediary - cannot lend from own funds or hold deposits. Requires ₹2 Cr NOF.
NBFC-ICC (Investment and Credit Company) can lend from its own balance sheet and has wider operational scope. Requires ₹10 Cr NOF.
NBFC-MFI (Microfinance) lends to economically weaker sections with specific income and loan size limits. Requires ₹5 Cr NOF.
Each category has distinct regulatory requirements, capital norms, and operational boundaries.
An existing NBFC can apply to RBI for conversion to NBFC-P2P category, subject to meeting all eligibility requirements. The NBFC must cease all existing lending activities, wind down its loan book, ensure ₹2 Cr NOF, build the requisite technology platform, and apply for change in classification. RBI will assess the application on merit, including the company's track record and compliance history. The conversion process typically takes 6-9 months.
IncorpX provides end-to-end NBFC-P2P registration services covering every stage of the process:
Business plan and financial projection preparation
Technology architecture documentation and VAPT coordination
Escrow bank arrangement facilitation
Complete RBI application preparation and filing
RBI liaison and query resolution throughout the process
Post-registration compliance setup and ongoing advisory
Our team of experienced financial regulatory consultants has successfully handled multiple NBFC-P2P applications with RBI. Contact us today at ₹99,999 for a comprehensive consultation.
The team was very responsive and helpful. I received daily updates from the WhatsApp group, and their guidance made everything much simpler to comprehend. If you want a simple and hassle-free way to launch your business, I would highly recommend them!
S
Simon Job
4.9/5
I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!
J
Jay R
4.8/5
The experience was flawless; the team completed each task with care and always responded quickly. Throughout the process, I never felt stuck. We would especially like to thank Saksham and Sriram for making everything run so smoothly! The IncorpX team offers extremely competitive pricing; anyone just starting out should definitely get in touch with them.
M
Mohammed Affan
4.9/5
I'm really grateful to the wonderful team at IncorpX for helping bring my co-founder's and my dream to life. The whole process was super smooth - fast service, great support, and no hassles at all. I'd highly recommend IncorpX to any new entrepreneur or founder looking to register their company. Excited to continue working with them in the long run. Thank you, IncorpX!
R
Riyom Taipodia
4.6/5
One of the best agency I have ever experienced. Team members are very friendly as if we know each other from before and came communicate and share easily. My work has been done in a very short period and I am so happy. Thank you so much.
A
Ayyappa Swamy
5/5
Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..
R
Ramesh Babu
4.9/5
Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.
P
Pravesh Kudesia
5/5
IncorpX is providing best service... And user experience! Thank You IncorpX Team
B
Balaji Gutte
4.9/5
I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.
D
Dia
5/5
I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!
Trusted by 15,000+ Entrepreneurs
Get Expert Guidance for Your Business
Fill out the form and our team will connect with you to understand your requirements and recommend the best way forward.
