P2P Lending NBFC RBI Compliance India — Platform Software 2026

P2P Lending NBFC RBI Compliance India — Platform Software 2026

Peer-to-Peer (P2P) lending platforms — where individual lenders fund individual borrowers through an online platform — are regulated in India as NBFC-P2P. RBI issued the Master Directions for NBFC-P2P Lending Platforms in 2017 and updated them subsequently. P2P platforms face strict exposure limits, mandatory escrow arrangements, and specific borrower-lender matching rules that require purpose-built software.

RBI Regulations for NBFC-P2P

Exposure Limits

• Aggregate borrower limit: a single borrower cannot borrow more than Rs. 10 lakh across all P2P platforms
• Aggregate lender limit: a single lender cannot lend more than Rs. 50 lakh across all P2P platforms (revised 2023)
• Single borrower-lender exposure: a lender's exposure to a single borrower cannot exceed Rs. 50,000

Escrow Mechanism

• All fund flows must route through escrow accounts held at a bank
• Lender funds: deposited in lender escrow account
• Borrower disbursement: from escrow to borrower account
• Repayment: from borrower to lender via escrow
• No commingling: platform cannot touch the funds for its own use

Borrower Eligibility

• CIBIL / credit bureau check mandatory
• Minimum eligibility criteria disclosed
• Platform cannot guarantee returns to lenders

Lender Protection

• No credit risk guarantee: lenders assume full credit risk
• Transparent risk disclosure: NPAs on the platform disclosed on website
• No assured returns: fixed return schemes are prohibited

Regulatory Returns

• Quarterly return to RBI: borrower count, lender count, outstanding portfolio, NPA rate
• Annual audited accounts

Fair Practices

• Recovery only by borrower, never by the platform
• No collection harassment

MICS P2P Platform Software Features

Lender Management

• Lender KYC: Aadhaar OTP eKYC + PAN verification + V-CIP for higher limits
• Risk profiling: lender's risk appetite, investment objective
• Lender dashboard: portfolio, returns, NPA rate, diversification
• Exposure tracking: lender's total exposure across all active loans — enforce Rs. 50 lakh limit
• Lender wallet: escrow balance visible to lender

Borrower Management

• Borrower KYC: Aadhaar OTP eKYC + PAN
• Credit bureau check: CIBIL score and report
• Credit scoring: P2P-specific scorecard
• Risk grade assignment: A, B, C, D — determines interest rate
• Exposure check: borrower total across all P2P platforms — Rs. 10 lakh cap
• Loan listing: approved borrower listed on platform for lender funding

Matching Engine

• Auto-matching: system matches lender funds to borrower requirements
• Diversification: lender funds spread across multiple borrowers per Rs. 50,000 single-exposure rule
• Interest rate: determined by borrower risk grade and market
• Manual matching option: for platform-assisted matching

Escrow Management

• Integration with escrow bank: HDFC, ICICI, or Axis (empanelled P2P escrow banks)
• Lender deposit: funds received in lender escrow
• Disbursement: from borrower escrow to borrower bank after match confirmed
• Repayment processing: borrower EMI → borrower escrow → lender escrow → lender account
• Escrow reconciliation: daily balance match between platform records and escrow bank

Loan Management

• Multi-lender loan: one borrower loan funded by 5-20 lenders
• EMI computation: borrower pays one EMI, platform distributes pro-rata to lenders
• Prepayment: split among lenders proportionally
• NPA: declared at 90 DPD — all lenders notified
• Recovery: facilitated by platform but not guaranteed

Risk Disclosure

• Website: platform NPA rate by risk grade published monthly
• Historical performance: actual returns vs. projected by grade
• No guaranteed return disclaimer: prominent on all lender-facing pages

Regulatory Reporting

• Quarterly RBI return: portfolio data in prescribed format
• NPA disclosures: website update monthly
• Lender and borrower count reporting

Pricing

• P2P platform software: Rs. 40,000/month (includes LOS, escrow integration, matching engine, regulatory reporting)
• One-time setup: Rs. 2,00,000
• Escrow bank integration: Rs. 75,000 one-time

Free P2P platform consultation: +91 9355273535 | admin@mics.asia