P2P Lending firms self regulating to stop instant withdrawals from 1-Apr
https://m.economictimes.com/tech/startups/p2p-lenders-to-stop-liquid-funds-as-rbi-peers-into-business/articleshow/108686922.cms https://twitter.com/ravihanda/status/1771021456287088858
P2P lending platforms like CRED mint and Mobikwik Xtra? Unregulated, vicious cash traps. RBI sambhalo, please! Now, aren't you concerned about your investment risks?
FancyChino64
Stealth
6 months ago
P2P Lending works like this.
1. InvestorA invests money.
2. That money will be lent to multiple people (to avoid concentration risk) by P2P Lending platform.
3. BorrowerA pays back as EMI or full amount
4. Investor gets only their share of money with interest that was lent to BorrowerA.
If the borrower doesn't pay the investor will not get money.
i2iFunding is one of the initial companies that started P2P Lending and they still operate correctly. I
These VC funded companies like Liquiloans changed that by saying that return is guaranteed which is not the case. This might be become a Ponzi scheme when borrowers doesn't pay back.
FancyChino64
Stealth
6 months ago
the platforms can't allow anytime withdrawal
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Doesn't this affect the investors rather and actually benefit the lending platforms? Or maybe I'm misunderstanding how stopping instant withdrawals equals to self-regulation?
FancyChino64
Stealth
6 months ago
Ideally P2P lending platforms should not offer anytime withdrawal option. But, most of them offer. RBI commented recently that such practices are incorrect. So, these platforms seem to be self regulating to avoid any regulatory interference.
So, If any investor parked their liquid money here, they should reconsider it now.
It’s an another red flag!
A mask of “self-regulation” before RBI send them back home packing.
Ajmonk96
Stealth
6 months ago
So guys I have 4 lac in 12 percbetage club.
Now withdrawal takes 2 days.
Should I remove it and wait what happens in this space
FancyChino64
Stealth
6 months ago
You may remove the money that u want to be instant accessible now....based on how things unfold, u may decide
Ajmonk96
Stealth
6 months ago
They won't shutdown right?
FancyChino64
Stealth
6 months ago
Shared by a friend :
Got an update from Mobikwik Xtra today
*What’s Changing:*
We will soon stop accepting new investments in the Flexi, our instant withdrawal product.
New investments will be in the in the Plus (Lock-In) schemes with four options:
* 1-month: Earn upto 10% p.a.
* 3-month: Earn upto 11% p.a.
* 12-months: Earn upto 12% p.a.
* 24-months: Earn upto 13% p.a.
