P2P lenders rework products, business to follow RBI diktat
Consumer-facing fintechs, which worked with lending platforms like Liquiloans, LenDenClub, Lendbox and Faircent to source credit for their users, have also become cautious with their product strategies, said people in the know.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitPeak XV-backed BharatPe has slowed down new investor onboarding for its 12% Club product, which is a P2P lending platform working with Liquiloans and LenDenClub, one of the persons cited earlier said.
“BharatPe wants to use the NBFC (non-banking financial companies) lending route to process credit for the merchants using its payment applications, reducing focus on the P2P lending business,” said a senior industry executive on condition of anonymity.
Also read | After online payments, digital loans, now P2P lending under RBI lens
Meanwhile, Bengaluru-based Cred has built tenure-based products for its users in a bid to abide by regulatory restrictions on instant withdrawals. It has also doubled the minimum investment criteria to Rs 2 lakh for anyone looking to park money in Cred Mint, its P2P lending offering.
ET had written on March 22 that the P2P industry has come together to stop instant withdrawal products in line with central bank guidelines.
Slowdown after the initial euphoria
“Cred had been cautious with Cred Mint
