International Peer to Peer (P2P) lending Business Legal Consultation

With the advancement of technology, there has been a dramatic change in lifestyle and people’s perceptions, from celebrating overnight to social media from sharing their morale on Facebook or trolling on Instagram or Twitter for a social cause all over the world. An online business idea Technology has opened up a virtual world that is now attracting businesses to transcend geographical boundaries. With the advent of new and improved technologies, life has become a lot easier than it was a decade ago. In an age where everyone is connected to the World Wide Web, there is also a lot going on in the search for financial mediation through technology. Ending and owing is an old relationship Interest rates from banks and financial institutions to intermediaries are correct from the date of lending Technology is now beginning an era to remove the threshold of physical presence for technology decisions and is creating rumours to create a new virtual space for decision making. One result of this is the example of a P2P business model, partner to partner, which is better known as P2P lending.

Current Views of the P2P Business 

Per-Per-End has become an important part of the financial services sector in many countries around the world. Companies like Lending Club in the United States and the United Kingdom are already at risk for retail banks. These companies now have crores of rupees. They advance loans of almost the same value as any retail bank in the country in question. 

The main reason for the success of these companies is that instead of advancing loans to those who have borrowed from their funds, they tend to bring together the general public of a country that have inactive funds and those who need them. These companies act as intermediaries between the ender and the donor. By acting as mediators they avoid the traditional dangers that a bank has to face as they act as lenders to every lender to endorse.P2P consulting can be a helpful concern to deal the P2P legal issues.

There are many success stories of global P2P ending providers (companies), but keep in mind that third-party money laundering is not easy to clone a business and succeed because it depends on multiple factors, including regulatory frameworks.

The emergence of new technologies and the low cost of communication P2P lending companies tend to spread far more widely than banks. Transacting parties do not need to be physically present, instead, they come together to do business on a virtual platform set up by this P2P ending provider. By using this platform, people can log in to the virtual platform provided by the P2P ending provider and distribute loans from far or wide.

P2P lending is growing rapidly around the world, and if it continues to do so, it is set to surpass the traditional banking system in the coming decades.

The United States alone has more than $ 8 billion in loans issued by the End Payments Club as of 2014, [5] which is very low compared to the country's retail deposits, but very low for players entering the market. But 7 years ago, the number of loans issued was huge

In the United Kingdom, the total amount of loans issued by P2PL companies increased from 871 million in 2012 to 2.4 billion in 2013 and has doubled every 6 months since then - 1 year. Although this is very small compared to the country's € 1.2 trillion retail deposits, their growth rate is being seen as a threat by the country's commercial banks.

Although the concept of P2P lending originated in the UK and developed in the United States, China is not far behind the world’s second-largest economy in taking advantage of P2P lending. Ppdai was the first P2P ending that went live in China in June 2007 and no P2P company has grown steadily ever since. Because of China’s conservative policies, no one knows about the total revenue of these platforms, but they certainly have some good benefits in staying in business and attracting new entrants, who come not only from China but also from abroad. . Alibaba Group Holding Limited's [6] financial arm is set to create a $ 163 billion (tr 1 trillion) P2P market place in China in 2016, with its P2P platform "Zhao Sai Bao" launched in April 2015 and previously worth $ 14 billion. A dollar marketplace "Think of us as an exchange of loans," said Zhao Sai Bao's CEO It is clear from this statement that Zhao Sai Bao is openly challenging Chinese retail banks in the ending business.

These countries and even these platforms have strict rules to check the amount of money circulated by circulation, as they are dealing with the ordinary money required to comply with strict rules for the protection of the general public.

In the United States, the Securities and Exchange Commission regulates P2P termination companies, in the UK the P2PL companies are regulated by the financial authorities, and in China, they are regulated by the People's Bank of China, which is the country's central bank.

While the world is witnessing an increase in P2P funding, the provision of P2P termination is not prevalent in India and its recognition is not recognized. Moreover, there is no regulation to provide P2P termination. The general rules of the country are based on the general rules of the UK, and based on nature it is easy and comprehensive, the regulatory complexity and ambiguity of the P2P model have served as a major barrier to entry into the region. It is unknown at this time what he will do after leaving the post. The Securities and Exchange Board of India (SEBI) has a draft on public funds but there is still a long way to go before the same work is completed and implemented.

P2P business is a process where financial lenders and lenders come together on a virtual platform for the purpose of doing business. The role of the platform is limited to acting as a facilitating agent, and in some complex models the P2P is actively involved in giving an ending other than serving as a platform facility center.