In an ambitious attempt for acquiring a strategic stake in Clix Capital and Paytm’s planned peer-to-peer (P2P) lending platform, One97 Communications, which controls both companies has reportedly held advanced talks.
As per reports, One97 Communications has held several meetings with both parties which have been quite progressive, following which finer aspects are currently being discussed.
According to a source closely following the matter who opted to remain anonymous, in an aim to operate its P2P lending platform for providing loans through an app or the web, Paytm has gone on to register with the Reserve Bank of India (RBI), although the service is yet to be launched.
About P2P Lending
It is a digital platform for all borrowers seeking loans and lenders who are willing to offer loans at various interest rates. In European countries, the popularity of such a platform has grown immensely, however it is still quite a new concept in India as approximately only a dozen companies are providing such services.
Additionally, given that many borrowers cannot avail loans from other sources, allows Lenders in P2P to imply higher interest rates.
As per reports, a cap of Rs 10 lacks has been placed by RBI on lenders that provide such loans. Significantly, add this to the recent meltdown of NBFCs, makes it very hard for operators of such lending platforms to raise money via foreign investors.