P2P Lending NBFC Licence
A P2P lending license in India is a Certificate of Registration from the Reserve Bank as an NBFC-P2P, the only way to run an online platform that matches lenders with borrowers. You need net owned fund of ₹2 crore, an application on RBI’s PRAVAAH portal and a working platform within 12 months of in-principle approval. We prepare the application, the policies and the escrow set-up.
What it is
An NBFC-P2P is a non-banking institution that carries on the business of a Peer to Peer Lending Platform. RBI defines the platform as an intermediary that facilitates loans through an online medium. It brings lenders and borrowers together. It does not lend its own money or hold lenders’ funds on its own balance sheet.
The rulebook is the Reserve Bank of India (Non-Banking Financial Companies – Peer to Peer Lending Platform) Directions, 2025, issued on 28 November 2025 and updated as on 1 October 2026. Paragraph 12 says no NBFC-P2P shall commence or carry on the business without a Certificate of Registration (CoR) from the Reserve Bank. The application is made through the PRAVAAH portal to RBI’s Department of Regulation.
Who it applies to
You are building a lending marketplace
Any platform that lets individuals, firms or companies lend to borrowers online needs the CoR. Only a company can apply, under paragraph 11.
Your group already lends
An NBFC-P2P cannot lend on its own. If your group already lends from its balance sheet through a registered lending NBFC, plan the platform as a separate company.
Your app already matches lenders and borrowers
An app or website that already arranges loans between people needs a CoR under paragraph 12. Regularise before you scale.
Why it matters
Run the marketplace legally
Paragraph 12 says no NBFC-P2P shall commence or carry on the business without a CoR. Registration is what makes the marketplace lawful.
Give lenders a clean money trail
Every rupee moves through escrow accounts operated by a bank promoted trustee, never through the platform’s own account, and never in cash.
Help borrowers build a credit record
Under paragraph 39, the platform reports and updates borrower credit information under RBI’s credit information reporting rules, so repayments made through it show up in credit records.
Documents required
About the company
- Certificate of incorporation, MOA and AOA
- Board resolution authorising the PRAVAAH application
- Audited financials or a certificate showing net owned fund of ₹2 crore
- Bank statements showing the source of capital
About promoters and directors
- KYC documents of every director and promoter
- Profiles showing technology, lending or finance experience
- Fit and proper declarations
- Shareholding pattern and group structure
About the platform
- A viable business plan
- A plan for a secure IT system
- Board-approved policy for matching lenders and borrowers
- Draft escrow arrangement with a bank promoted trustee
- Fair practices code and business continuity plan
P2P exposure limits at a glance
| Limit | Rule | Paragraph |
|---|---|---|
| One lender, all borrowers, all platforms | Up to ₹50 lakh, consistent with the lender’s net worth | 26 |
| Lender putting in more than ₹10 lakh | CA certificate showing net worth of at least ₹50 lakh | 26 |
| One borrower, all platforms | Up to ₹10 lakh at any point of time | 27 |
| One lender to the same borrower | Up to ₹50,000 across all platforms | 28 |
| Loan maturity | Not more than 36 months | 29 |
| Platform’s own borrowing | Outside liabilities not more than two times owned funds | 25 |
Here is the catch: these limits apply across all P2P platforms, not just yours. Picture a retired officer in Faridabad who already has ₹45 lakh spread over two other platforms. Your platform can take only ₹5 lakh more from him, and because he lends more than ₹10 lakh, he must first give you the CA’s net-worth certificate. So the platform needs a way to collect declarations and check each participant’s position before a loan goes through.
How it works
Test your model against paragraph 22
The platform cannot lend on its own, give credit enhancement or guarantees, facilitate secured loans or cross-sell anything except loan-specific insurance. Say you planned to let shopkeepers in Ballabgarh borrow against gold. That is secured lending, so it does not fit a P2P platform.
Incorporate and bring in ₹2 crore
We handle company incorporation if needed and document the ₹2 crore net owned fund and its source.
File the application on PRAVAAH
The application goes to the Department of Regulation. Under paragraph 15, RBI looks at seven things: incorporation in India, technological and managerial resources, capital structure, fit and proper promoters and directors, character of management, a secure IT system and a viable business plan.
Build the platform within twelve months
After in-principle approval, you have twelve months to put the technology platform in place and sign the legal documents, including the escrow arrangement with the trustee.
Go live and keep the records
Once RBI grants the CoR, we help you set up the monthly portfolio disclosures, credit information reporting and the records your loan management software must keep for the full tenure of every loan.
Timelines
Finish the platform within twelve months
In-principle approval is valid for twelve months. Within that period the technology platform and legal documents must be ready, under paragraphs 17 and 18.
Clear escrow by T+1
Funds cannot remain in the lenders’ or borrowers’ escrow account beyond T+1 bank working day, where T is the day the money arrives. In practice, money that lands on a Monday must move out by Tuesday, if Tuesday is a bank working day.
Run an IS audit every two years
Paragraph 57 requires an Information System Audit at least once in two years by CISA certified external auditors.
What happens if you break the rules
Your in-principle approval runs out
In-principle approval is valid for twelve months. A platform that is not ready by then runs out of approval before the CoR is granted.
You run the platform without a CoR
Paragraph 12 bars a company from commencing or carrying on P2P lending without a CoR from the Reserve Bank.
Your platform starts acting like a lender
Lending your own funds, guaranteeing loans or promising returns breaks paragraphs 22 and 46, and the CoR itself is granted subject to the conditions RBI sets.
Frequently asked questions
How do you get a P2P lending license in India?
You apply to RBI for a Certificate of Registration as an NBFC-P2P. The applicant must be a company with net owned fund of at least ₹2 crore. The application goes through the PRAVAAH portal to the Department of Regulation. RBI first grants in-principle approval, valid for twelve months, during which you build the platform and sign the legal documents. RBI then grants the CoR, subject to the conditions it sets. We handle each step with you.
What is the minimum net owned fund for an NBFC-P2P?
The minimum is ₹2 crore. Paragraph 13 of the P2P Directions requires a net owned fund of not less than ₹2 crore, or such higher amount as the Reserve Bank may specify. RBI’s NBFC registration directions set the same ₹2 crore for NBFC-P2P and NBFC-AA. A lending NBFC-ICC, by contrast, must reach ₹10 crore by 31 March 2027. We help you document the capital and its source.
How much can one lender invest through P2P platforms?
Up to ₹50 lakh across all P2P platforms at any point of time, under paragraph 26. The amount must be consistent with the lender’s net worth. A lender who lends more than ₹10 lakh across platforms must give the platform a certificate from a practising Chartered Accountant showing net worth of at least ₹50 lakh. Build that check into lender onboarding and the cap is easy to enforce.
How much can a borrower raise on P2P platforms?
Up to ₹10 lakh across all P2P platforms at any point of time, under paragraph 27. A single lender’s exposure to the same borrower cannot exceed ₹50,000 across all platforms, and loan maturity cannot exceed 36 months. So a ₹2 lakh loan needs at least four lenders. Your platform has to check all three limits before each disbursement, not after.
How does the P2P escrow mechanism work?
All money moves through at least two escrow accounts operated by a bank promoted trustee. The lenders’ escrow account holds funds pending disbursal; the borrowers’ escrow account collects repayments. Funds in one cannot be used for the other’s purpose, and cash is strictly prohibited. Under paragraph 38, no money may stay in either account beyond T+1 bank working day. We help you set up the trustee arrangement.
Can a P2P platform guarantee returns or lend its own money?
No. Paragraph 22 says the platform shall not lend on its own and shall not provide or arrange any credit enhancement or credit guarantee. Paragraph 46 bars promoting P2P lending as an investment product with features like tenure-linked assured minimum returns or liquidity options. Lenders must give an explicit declaration that the platform does not assure returns. Say it plainly in your marketing and you stay on the right side of paragraph 46.
Can P2P loans be secured against property or gold?
No. Paragraph 22 says an NBFC-P2P shall not facilitate or permit any secured lending linked to its platform, so only clean loans are permitted. If your business needs secured loans, such as loans against property or gold, a lending NBFC is the right structure instead. We can help you compare both routes before you apply.
What technology rules apply to a P2P platform?
Four rules matter most. Paragraph 15 requires a plan for a secure Information Technology system before approval. Paragraph 22 requires all data about the platform’s activities and participants to be stored and processed on hardware located in India. Paragraph 56 asks for a Board-approved business continuity plan so loans can be serviced for their full tenure even if the platform closes. Paragraph 57 adds an IS audit every two years.
How does an NBFC-P2P earn money?
Through fees charged to participants. Under paragraph 35, fees must be a fixed amount or a fixed proportion and cannot depend on whether the borrower repays. The platform cannot cross-sell any product except loan-specific insurance, and not even insurance that works as credit enhancement. Price on these rules from day one and your revenue model stays inside the Directions.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Ready to begin?
Tell us how your platform will match lenders and borrowers, and we will map your route to an NBFC-P2P registration.