RBI increases P2P lending limits to Rs 50 lacs

@nithin, Economic Times recently covered RBI increasing the P2P lending limit in this article:

What would this mean for the P2P lending startups in India? Also, are there any wider ramifications?

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Of course this is good for all of these startups.

The big challenge for P2P startups in India is on the supply side - which is enough money being lent on the platform. As we all know, most of country doesn’t have the money, so there are enough borrowers, these platforms weren’t taking off due to not enough on the lending side.

Most of the wealth today is concentrated with a small % of the population. These HNI’s haven’t looked at P2P because deploying 10lks limit was extremely small. Imagine a HNI with 10 crores, why would he take the effort of doing everything on a platform if the maximum he could lend is 10lks or 1% of portfolio.

10lks going upto 50lks is good for the P2P industry, but I don’t know if it is enough. We have been interacting with many of the P2P players, and might partner someone if we see the industry pick up.


Any change in thoughts for the P2P business & as a investible asset class 1 year on @nithin?

No @PratikThakkarCO, we are still thinking of this the same way we did before.