“Investors are also waiting for RBI to finalise the regulations,” he said.Peer-to-peer or P2P lending is an alternative lending-borrowing model to traditional financial institutions.The RBI proposed to regulate P2P lending platforms as a separate category of non-banking finance companies. When the final guidelines come in, the regulator may say that all transactions between borrowers and lenders need to be done through banks.Vaddadi said i-lend platform allows three investors to come together and lend money to a single borrower. It has kept i-lend has kept borrowing rates in the range between 12% and 24%. I-lend gets 3% processing fee from borrowers and 1% fee from lenders registered with it.It begun journey in 2013 with Rs 2.5 crore capital.India has about 30 online P2P marketplaces including Faircent, i2iFunding and LenDenClub . The credit worthiness of the borrowers is being judged by the service providers.Vaddadi said i-lend has processed 380 loans so far for Rs 3 crore.

Source: Economic Times January 30, 2017 12:22 UTC