Understand the platform's permitted role
An NBFC-P2P is a regulated intermediary connecting lenders and borrowers, rather than a bank deposit account or a lender advancing its own money. The RBI's 2025 directions require registration and define permitted activities, participant due diligence and borrower assessment. Platforms must not accept deposits, lend on their own or arrange credit guarantees, and the framework permits unsecured lending rather than loans secured against assets. International flows of funds are prohibited within this framework. Read the platform's legal name and registration details before treating an app or online marketplace as an authorised NBFC-P2P.
Separate legal safeguards from repayment promises
Lending and repayment transfers follow the prescribed escrow arrangements administered by a bank-promoted trustee, and fees must be disclosed. These controls do not guarantee that a borrower will repay: lenders can lose their entire principal. Review the applicable exposure limits, maturity restrictions, risk disclosures and complaint process in the current RBI directions instead of relying on promotional comparisons with savings products. P2P describes the intermediation model, not a religious certification. Any claim that an arrangement is qard hasan or otherwise Sharia-compliant needs a separate review of interest, charges, contracts and actual operations; RBI registration alone does not establish those characteristics.