Q. With reference to NBFC-P2P (peer to peer) lending, which of the following statements is/are correct?
Select the correct answer using the code given below:
Q. With reference to NBFC-P2P (peer to peer) lending, which of the following statements is/are correct?
Select the correct answer using the code given below:
The correct option is B 1 and 2 only
Explanation:
Statement 1 is correct: NBFC Peer to Peer Lending Platform means an intermediary providing the services of loan facilitation via online medium or otherwise, to the participants. In simple terms it is like crowdfunding where the loans are raised and repaid with interest without having to get it from a financial institution. An individual borrower can borrow or lend money on a platform. And the loans given here are unsecured loans. They are regulated by the Reserve Bank of India.
Statement 2 is correct: The NBFC P2P acts as an intermediary providing an online marketplace or platform to the participants involved in Peer to Peer lending. They are not allowed to engage in lending activities to its members. They cannot raise any deposits or provide or arrange any credit enhancement or credit guarantee.
Statement 3 is incorrect: The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of 50 lakh rupees. The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed fifty thousand rupees. The maturity of the loans shall not exceed 36 months.
Explanation:
Statement 1 is correct: NBFC Peer to Peer Lending Platform means an intermediary providing the services of loan facilitation via online medium or otherwise, to the participants. In simple terms it is like crowdfunding where the loans are raised and repaid with interest without having to get it from a financial institution. An individual borrower can borrow or lend money on a platform. And the loans given here are unsecured loans. They are regulated by the Reserve Bank of India.
Statement 2 is correct: The NBFC P2P acts as an intermediary providing an online marketplace or platform to the participants involved in Peer to Peer lending. They are not allowed to engage in lending activities to its members. They cannot raise any deposits or provide or arrange any credit enhancement or credit guarantee.
Statement 3 is incorrect: The aggregate loans taken by a borrower at any point of time, across all P2Ps, shall be subject to a cap of 50 lakh rupees. The exposure of a single lender to the same borrower, across all P2Ps, shall not exceed fifty thousand rupees. The maturity of the loans shall not exceed 36 months.
