📌 1. Introduction
A Peer-to-Peer (P2P) Lending License is mandatory for any platform that facilitates borrowing and lending of money between individuals without a traditional financial intermediary. Regulated by the Reserve Bank of India (RBI) since 2017, P2P platforms play a vital role in India’s evolving fintech ecosystem by providing easy credit access and better returns.
🌟 2025 Update: RBI has tightened P2P regulations including stricter KYC, loan exposure caps, and mandatory API reporting integration under the Digital Lending Guidelines (2022-25).
🏷️ 2. Types of Licenses Offered
P2P businesses must register as Non-Banking Financial Companies – P2P (NBFC-P2P). RBI offers only one type of license:
- NBFC-P2P License – Allows digital platforms to act as intermediaries between lenders and borrowers. Direct lending is prohibited.
🎯 Note: P2P entities cannot:
- Lend themselves
- Take public deposits
- Provide credit guarantees
👥 3. Who Needs These Services?
You need a P2P License if you are:
- A fintech startup offering credit matchmaking
- A company operating a lending aggregation platform
- A crowdlending or investment-tech platform
- Planning to offer loan-based mutual or group funding models
🧪 Case Study (2024): A Delhi-based startup was penalized ₹10L for operating a lending platform without NBFC-P2P approval.
✅ 4. Why Choose a License Registration Service Provider?
Partnering with experts ensures:
- End-to-end compliance with RBI master directions
- Hassle-free preparation of RBI documents & business plan
- Setup of IT framework, grievance redressal, and escrow arrangement
- Assistance in regulatory inspections
🛡️ A minor error in data privacy policy or escrow model can delay licensing by months!
📝 5. Registration Process
Follow these step-by-step actions to get an NBFC-P2P License:
- Company registration under the Companies Act, 2013
- Ensure minimum Net Owned Funds (NOF) of ₹2 crore
- Create a robust Business & Technology Plan
- Open Escrow accounts with a scheduled bank
- File application via the RBI COSMOS Portal
- Await review, inspection, and license approval
📄 6. Required Documents
✔️ Mandatory Documents:
- Certificate of Incorporation
- PAN & DIN of directors
- Detailed business model
- IT security policy & source code access
- Credit assessment & grievance redressal policies
- Net worth certificate by a CA
- Escrow arrangement proof
💰 7. Cost Involved
💸 Typical costs include:
| Component | Estimated Cost |
| RBI Application Fee | ₹15,000–₹25,000 |
| Capital Requirement (NOF) | ₹2 crore (min) |
| Legal & Consulting Fees | ₹1 lakh – ₹3 lakh |
| Annual Audit & Compliance | ₹75,000 – ₹2 lakh/year |
⏳ 8. Time Taken
📅 Estimated Timeframe:
- Document Preparation: 2–3 weeks
- RBI Scrutiny: 3–6 months
- Total Licensing Duration: 90–180 days
🕵️♂️ Time may increase if RBI requires post-application clarifications.
⚠️ 9. Common Mistakes to Avoid
🚫 Don’t make these errors:
- Submitting an incomplete business model
- Failing to show robust credit and default risk policies
- Not having Escrow arrangements in place
- Ignoring Data Protection and Cybersecurity Frameworks
- Using white-label software with no source code access
📞 10. Call-to-Action (CTA)
Need a reliable partner to get your P2P License in India?
📧 Email: opriyatrendingpvtltd@gmail.com
📱 WhatsApp: +91 7588756518
🌐 Visit: https://opriyatrending.in
❓ 11. FAQs
Q1: Is a P2P platform allowed to lend money?
A: No, only matchmaking is permitted. Platforms cannot lend or guarantee repayment.
Q2: Can an LLP or individual apply for a P2P license?
A: No. Only private/public limited companies with ₹2 Cr NOF can apply.
Q3: What is the lender exposure limit?
A: Max ₹50 lakh per lender (as per 2022 RBI Update), subject to KYC.
Q4: Are there any tax implications for lenders?
A: Yes. Interest earned is taxable income under “Income from Other Sources.”
