Non-performing assets (NPAs) of peer-to-peer lending institutions more than doubled to Rs 1,163 crore at the end of PY24, a report said on Monday.
Peer-to-peer (P2P) lenders raise funds from investors to on-loan to individuals or organizations.
Citing RBI data disclosed in response to an RTI (Right to Information) application, CapitalMind Financial Services had a total loan volume of Rs 472.1 crore at the end of FY23.
NPAs of relatively new lenders are estimated to be 17% of total loans to such financiers, it said.
The data showed that the high tension has come at a time when the P2P sector has been implemented with stricter regulatory measures following concerns from various quarters. P2P organizations say the new guidelines are a body blow to the sector.
In a statement, CapitalMind said the RBI will focus on eliminating debt consolidation, which ensures direct exposure between lenders and borrowers, and increase transparency by mandating platforms to provide detailed borrower information, including credit scores, to help lenders make informed decisions.
In addition, it has been mandated to settle transactions within a day through escrow accounts, and caps have been placed on both borrowing (at Rs 50 lakh per borrower) and borrowing (at Rs 10 lakh with a limit of Rs 50,000 for a single borrower). , said.
CapitalMind said that while these measures aim to stabilize the sector, they also introduce barriers that can stifle growth and innovation.
“The current crisis underscores the need for a balanced approach to regulation – one that protects stakeholders without stifling the industry’s potential to bridge India’s huge credit gap,” it added.