(PEER TO PEER) Registration - An Overview
It is the process of giving loans to individuals or business through online service that matches lenders with borrowers. P2P is a form of financing used to raise loan which is paid backed with interest which enables people to borrow and lend money without the interference of an intermediary.
REGISTRATION PROCESS FOR PEER TO PEER LICENCING
- Incorporated company with a net worth of Rs 2 crores.
- Application are submitted via online to RBI and a physical copy is submitted along with essential documents.
- After scrutinizing RBI will issue a certificate of registration to carry own with the business.
- Create a P2P lending software.
DOCUMENTS REQUIRED
- Certificate of incorporation.
- Memorandum of Association.
- Articles of Association.
- Audited Balance Sheet of the company.
- Net Worth Certificate of the Company.
- Feasible business plan.
- Declaration of the director’s “ Fit and Proper” criteria.
- Source code of the website.
BENEFITS OF P2P
- An easy platform to begin borrowing and investment which also provides scrutiny over borrower’s platform.
- Simple accessibility of loans through this platform.
- High risk for unsecured borrower’s
- P2P platform is the most fastest and convenient mode of lending and borrowing of money.