Peer To Peer Lending is 1 The practice of lending money to individuals or businesses through online ...........

Economic Affairs Small Scale Industries

Peer-To-Peer Lending is:

1. The practice of lending money to individuals or businesses through online services that match lenders with borrowers.

2. Aimed at facilitating financial inclusion through greater credit through greater credit access for small and micro enterprises.

3. Providing financial services with more operational cost than other traditional financial institutions.

Which of the above statements is/are correct?

1 and 2 only

1 and 3 only

2 and 3 only

1, 2 and 3

Statement 1 is correct: Peer to Peer (P2P) lending is the practice of lending money to individuals or businesses through online services that match lenders with borrowers.
Statement 2 is correct: This will help achieve the government’s dream of facilitating financial inclusion through greater credit access for small and micro enterprises, which till now were either denied access or were under-served by the traditional financial institutions. Reserve Bank of India (RBI) has identified peer-to-peer lending startups as a special category of non-banking finance companies (NBFCs) and will be regulated by the banking regulator.
Statement 3 is incorrect: Since peert o-peer lending companies offering these services generally operate online, they can run with lower overhead and provide the service more cheaply than traditional financial institutions.