P2P lending platform i2iFunding.com has received its NBFC-P2P certification from the Reserve Bank of India (RBI), a release from the company said. The RBI issued those guidelines last October, to register and accredit P2P lending firms that resell loans from individuals who have money to invest.

Started in 2015, the Noida based company essentially connects lenders with spare money with borrowers. The platform facilitates these transactions through background checks using factors like CIBIL, and CRIF scores. On its website, the company writes that it uses a proprietary algorithm for credit scoring and risk assessment.We have developed an automated in-house Credit Evaluation Model which is based on real-time integrated analysis of data from mobile, social media, CIBIL report, bank account statement etc. Our credit model evaluates borrowers’ profiles on more than 100 parameters using thousands of data points.” It has previously raised Rs 2 crore from angel investors in May 2016. Following that, in March this year, the company raised Rs 5 crore in a second round of angel funding.

Borrowers can request loan amounts between Rs 25,000 (minimum) to Rs 3 lakh (maximum) and in in multiples of Rs 5,000 between the both. The platform facilitates loans for a minimum duration of 1 month and in subsequent multiples of 3, 6, 12,18, 24, 30 and 36 months, with 36 months being the maximum tenure. The company charges interest rates based on an applicant’s credit profile, according to its website.

i2iFunding.com now becomes the sixth lender to operate in the NFC-P2P space. In July, LenDenClub, Cashkumar and BigWin became the fifth, fourth and third lenders, respectively, to operate in the NBFC-P2P space. In June, OMLP2P became the second P2P lender to get RBI’s nod for NBFC-P2P certification, while In May, Faircent became the first such platform to receive this certification from the central bank.

RBI regulations

According to the guidelines put out by the RBI last year, the P2P platforms will act as only as an online intermediary and not raise deposits. These platforms will only act as a facilitator between different parties, and cannot provide any credit enhancement or credit guarantee. The RBI also directs that these companies cannot cross-sell other any product except for loan specific insurance products, and are not permitted international flow of funds. Also, the P2P lending platforms are supposed to undertake due diligence on the participants including credit assessment and risk profiling of the borrowers and disclose the same to their prospective lenders. They will also have to take prior and explicit consent of participants to access their credit information. The guidelines add that, the platforms will have to provide assistance in disbursement and repayments of loan amount and render services for recovery of loans originated on the platform.