Peer-To-Peer Lending


 
 
Concept Explanation
 

Peer-To-Peer (P2P) Lending

P2P lending is a crowd-funding model (largely online) where people looking to invest their money with people who want to borrow can do so. Peer-to-peer lending is a form of crowd- funding used to raise loans for people who  need to borrow, from people who want to invest.

Regulatory Practices by Major Countries

  • Australia
  • China
  • France
  • Germany
  • New Zealand
  • United Kingdom
  • United Sates of America
  • All peer-to-peer lending (P2P) platforms will be regulated by the Reserve Bank of India (RBI)

    Fund Transfer Mechanism

    Fund transfer between participants on the P2P lending platform will happen through escrow account mechanisms.

    All fund transfers shall be through and from bank accounts, and cash transactions are strictly prohibited.

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