There are more than 5 crore MSMEs in India and their contribution to the Indian economy is quite significant. The Micro, Small and Medium Enterprises are creating massive employability up to 12 crore people which is close to 33% of India’s manufacturing output. But still MSMEs suffer from an incredible capital shortage that amounts to Rs. 32 trillion as per the International Finance Corporation. Throughout the choppy rides of hostile investment and funding environment? The answer reads in a social media and technology.
P2P lending to intermediary service that helps lenders and borrowers through online platforms, judiciously using technology and social media to provide quick and easy loan approvals. Somail Khan, VP of P2Peasy.com, on online peer to peer lending financial portal, asserts that with Aadhar and GST is in place, completing the finalization as a compliant financial option to regular banking processes.
No wonder, looking at the possibilities that P2P services can offer to the small set of businesses and to needy people who can not go around the bureaucratic loops of a banking system; RBI, in a recent notification, has stated that all P2P lending platforms are being treated as NBFCs with minimum capital requirements and regulatory disclosures to the RBI.
The notification, to the delight of P2P lending industry, is therefore one of the innovative ways and processes that eases pressure on the regular banking system in India. Since banks consider risking due to their small business ways of operations, financial standing and unregulated documentation. Adding to the weight of their own non-performing assets which stresses the bankers to follow the rigors set by regulators making them less agile to changing financial conditions within the nation.
These reasons again indicate why P2P lending can be disrupted for small business with disciplined execution and Mr Sumit Sharma, CEO of the ‚With reduced infrastructural cost (online operations)‘, says he’s the only one of his kind to do so online peer to peer lending financial portal. P2PEasy.