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P2P Lending (RBI NBFC-P2P)

Below 12% forward floor — included only for diversification, excluded from optimizer by default.

Fwd expected return 8.0%

Annualised volatility 6.0%

Sleeve p2p-lending

Below floor Below 12%

P2P lending — critical caveat

Advertised 10-18% is gross/pre-default marketing — not net return.
RBI (Aug-2024) banned assured-return marketing, credit guarantees, secondary-market liquidity.
Lender bears 100% of default loss. No deposit insurance. No SEBI protection.
Illiquid — locked until each loan repays. No secondary market.
Slab-taxed (no LTCG benefit).
Realistic net: 6-10%. RBI publishes no official NPA series; inferred 4-12%.
Caps: ₹50L aggregate across all P2P platforms, ₹50k per borrower.
Recent enforcement: LenDenClub ₹1.99Cr fine, NDX ₹1.92Cr fine.

RBI NBFC-P2P Master Directions →

Risk notes

CRITICAL: advertised 10-18% is GROSS/PRE-DEFAULT MARKETING, not net track record. RBI (Aug-2024) BANNED assured-return marketing, credit guarantees, secondary-market liquidity. Lender bears 100% of default loss; unsecured; NO liquidity (locked till repay); NO deposit guarantee; slab-taxed (no LTCG). Realistic net ~6-10%. RBI publishes NO official NPA time-series (4-12% inferred). Caps: ₹50L aggregate, ₹50k per borrower. Enforcement real (LenDenClub ₹1.99cr, NDX ₹1.92cr fined).

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