Following the RBI’s guidelines to give NBFC status to peer-to-peer lending companies in the country, the lending firms have come together to form the ‘Association of P2P Lending Platforms’.
The first-of-its-kind association will act as a representative for its members, as well as the country’s P2P lending industry.
Shankar Vaddadi, Founder, i-lend.in has been appointed as the President of the association, while Vinay Mathews, Founder, and COO, Faircent.com is an acting Vice President of the outfit, according to a press statement.
The association aims to work in conjunction with the government and regulatory authorities in matters of compliance and to further the cause of financial inclusion in the country.
Earlier, the RBI had identified such companies as a special category of non-banking finance companies (NBFCs) and will be regulated by the banking regulator.
The growth projections for the P2P lending market projected to be worth $4-5 billion by 2023, and the RBI’s guidelines have lent immense credibility to the P2P lending model.
The association will actively work towards creating awareness about online P2P lending in India and promoting its merits as an innovative and high-yield asset class among individual and institutional investors. It’s also slated to enter into strategic partnerships and collaborations with other stakeholders or industry players, organise seminar and events.
The association also intends to undertake research and development, collect data and conduct surveys that will further the development of the P2P lending industry in India. The research and its findings will be shared publicly, and exchange of ideas will be encouraged through various conferences, lectures, and sponsored events.
According to, Shankar Vaddadi, the association, and all its members will be dedicated to ensuring the utmost co-operation with the regulators, facilitating the industry’s expansion on various fronts, and establishing P2P lending as an innovative and lucrative asset class among Indian consumers.
Other founding members include Bhavin Patel, Founder, and CEO, LenDenClub and Bhuvan Rustagi, Co-Founder and COO, Lendbox.in who will be the association’s Secretary and Treasurer respectively.
Peer-to-peer lending platforms are online technology-based players who connect lenders with borrowers. With their algorithms and decision-making abilities, they help lenders take a call on the creditworthiness of the borrowers and also enable quick disbursal of loans at reasonable interest rates.
Besides helping the startups engaged in this business raise organised funding, the announcement also recognises the fact that P2P lending platforms can play a vital role in bridging the financial needs of the economy.