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With reference to the Peer-to-Peer (P2P) lending, consider the following statements:
- It enables individuals to obtain loans directly from other individuals without the involvement of the financial institution.
- The minimum capital required to set up a P2P platform is Rs. 200 Crores.
Which of the statements given above is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
With reference to the Peer-to-Peer (P2P) lending,consider the followin...
Peer-to-Peer (P2P) Lending
Statement 1: It enables individuals to obtain loans directly from other individuals without the involvement of the financial institution.
This statement is correct. P2P lending is a form of crowd-funding that allows individuals to lend and borrow money directly from each other through an online platform without the need for a traditional financial institution such as banks. The platform acts as a mediator and connects borrowers with lenders. P2P lending has gained popularity in recent years due to its flexible terms, lower interest rates, and quick processing times.
Statement 2: The minimum capital required to set up a P2P platform is Rs. 200 Crores.
This statement is incorrect. The Reserve Bank of India (RBI) has set guidelines for P2P lending platforms in India, which includes a minimum capital requirement of Rs. 2 Crores. This is to ensure that the platform has sufficient financial resources to meet its obligations and maintain a healthy business model.
Conclusion
In conclusion, statement 1 is correct as P2P lending enables individuals to obtain loans directly from other individuals without the involvement of the financial institution. Statement 2 is incorrect as the minimum capital required to set up a P2P platform is Rs. 2 Crores as per RBI guidelines.
Statement 1: It enables individuals to obtain loans directly from other individuals without the involvement of the financial institution.
This statement is correct. P2P lending is a form of crowd-funding that allows individuals to lend and borrow money directly from each other through an online platform without the need for a traditional financial institution such as banks. The platform acts as a mediator and connects borrowers with lenders. P2P lending has gained popularity in recent years due to its flexible terms, lower interest rates, and quick processing times.
Statement 2: The minimum capital required to set up a P2P platform is Rs. 200 Crores.
This statement is incorrect. The Reserve Bank of India (RBI) has set guidelines for P2P lending platforms in India, which includes a minimum capital requirement of Rs. 2 Crores. This is to ensure that the platform has sufficient financial resources to meet its obligations and maintain a healthy business model.
Conclusion
In conclusion, statement 1 is correct as P2P lending enables individuals to obtain loans directly from other individuals without the involvement of the financial institution. Statement 2 is incorrect as the minimum capital required to set up a P2P platform is Rs. 2 Crores as per RBI guidelines.
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Community Answer
With reference to the Peer-to-Peer (P2P) lending,consider the followin...
After digital payments and digital lending, the Reserve Bank of India is looking closely at platforms that facilitate direct, or peer-to-peer (P2P), lending between individuals.
- It is done through a website that connects borrowers and lenders directly.
- Those who want to lend money, open an account with a P2P platform as a lender. And those who require a loan register themselves as a borrower.
- It enables individuals to obtain loans directly from other individuals, cutting out the financial institution as the middleman.
- In 2017, the Reserve Bank of India brought this service under its regulatory purview.
- Only an NBFC can register as a P2P lender with the permission of RBI. Every P2P lender should obtain a certificate of registration from the RBI.
- The minimum capital requirement to set up a P2P platform is fixed at Rs. 2 Crores.
Hence only statement 1 is correct.
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With reference to the Peer-to-Peer (P2P) lending,consider the following statements: It enables individuals to obtain loans directly from other individuals without the involvement of the financial institution. The minimum capital required to set up a P2P platform is Rs. 200 Crores.Which of the statements given above is/are correct?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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