The guidelines introduced by the Reserve Bank of India (RBI) on P2P lending will bring a greater degree of transparency and seriousness to the sector, according to the exporters.
i2i funding, a P2P funding company welcomed the much awaited RBI guidelines, considering the guidelines as a defining moment for P2P lending sector. While P2P is considered a credible alternative financing option in India, the guidelines have helped in enhancing the credibility of the sector for masses.
“It will help us get credit information report of a borrower directly and also share delays and defaults in repayments to CICs. This will further resolve our concerns about direct transfer between lenders and borrowers which RBI said in consultation paper,” said co-founder i2ifunding, Raghavendra Pratap Singh.
Adding to this, Singh said that these guidelines will bring more transparency in this sector and will force accurate disclosure of data from all P2P players.
“We are quite happy with the way RBI has covered all the points including the structure of the transaction, transparency, right of lender/borrowers and responsibilities of the platform. They have addressed majority of the requirement of p2p platforms by defining payment mechanism and allowing historic data submission to credit bureaus. There was only one hitch point regarding capping of lender investment amount. However, I am sure that RBI will increase that cap in upcoming times,” added co-founder and chief executive officer LenDenClub, Bhavin Patel.
Source: ABP Live