Options before telecom to furnish guarantees for clearing AGR dues

dot osp registration


The issue of Adjusted Gross Revenue (AGR) is literally giving sleepless nights to some of the telecom majors. The matter has generated enough heat in India with some like Vodafone threatening to quit its operations in the country. However, things are finally showing semblance of normalcy with some flexibility being given to telecom operators with regard to AGR. The Telecom majors such as Vodafone-Idea and Bharti Airtel have plans to provide license, spectrum, tangible net assets and tax refunds as security to assure the honoring of AGR dues.

The problem persists

As part of the hearing process with regard to the AGR a week before, the Supreme Court has stringently sought a reply from the telecom operators, regarding the roadmap, timeline and security related to the AGR payment. This was part of the response regarding the plea that the Department of Telecommunication or DOT filed, permitting telecom players to pay the AGR dues in a flexible way over the next 20 years. However, the apex court was of the view that staggered payment can only happen if there is a clarity over schedule or security on the part of the telecom players. According to a reliable source, “Telecom operators are presently evaluating the net worth of their tangible assets. This is very critical in getting clarity over the security aspect the Supreme Court had sought from them.” But the woes regarding the AGR are only exacerbating despite having a clear idea with regard to the way forward concerning the AGR dues. The problem began when the National Company Law Appellate Tribunal accepted spectrum within the ambit of asset in a hearing, but the Department of telecommunication disagreed with it. So, the whole matter of whether spectrum qualifies as assets lies with the Supreme Court.

Security clearance through assets sans spectrum

For the telecom major duo, Vodafone Idea and Bharati Airtel, the privilege of the tax refunds is there and the same amounts to INR 35,000 Crore. Also, there is a provision of some funds from the pending public sector units and the same comes to INR 20 thousand Crore. With such sources of revenue, the two telecom operators can breathe a little easy regarding the issue of AGR.

Guarantee is proving to be a thorn in the flesh for telecos

Despite Supreme Court asking the telecom players to furnish guarantee acting on the plea of DoT, things don’t look very promising for the telecom operators. According to a source, “ the banks have already been stretched a lot by the telecom operators that providing more guarantee would be out of the question. Also,there exists another problem wherein one has to furnish the security of 70%-90% of the loan dues to obtain the loan amount. This is very much impossible considering the situation that the pandemic had on the businesses and economy as a whole. This prompted Vodafone-Idea to say that it can’t provide a guarantee.


The signs are not too favourable for telecom companies with regard to the AGR with an obstinate Department of Telecommunication breathing down their necks. As of now, the situations the telcos are in turn out to be a bit ominous as they are looking at projecting spectrum, license and tax refunds as guarantees related to AGR. It is very difficult to pin the blame on anyone for this matter. In reality, it is the DoT that grants the telecom operators the OSP License. So, it is in the best interest of telecom players to file the tax returns appropriately and on time. In case, the telecom businesses find the task to challenging then they should take the help of tax experts. Had these operators filed the returns properly things would not have reached this stage. This proves that filing tax returns is important otherwise a headache like AGR would always crop up to take away your peace and happiness.



The LLP stands for limited liability partnership which can be defined as a corporate entity registered under the limited liability partnership act ,2008.

It can also be defined as a hybrid form of partnership that enjoys limited liabilities and also includes features of a company.One should note that the compliances for a company are applicable to limited liability partnership.


There are certain business activities where the limited liability partnership companies need prior authority of regulatory authorities before the beginning and usch business activities are venture capital ,banking , stock exchange ,merchant banking ,architecture , chit fund ,reconstruction , NBFC ,mutual fund etc.

All the activities marked above need the prior approval for concerned authorities and bodies before starting the business as per terms and conditions of the companies act ,2013.


According to new companies act ,2013 , the foreigner can also become a partner in the limited liability company keeping in mind that there should be at least one member or partner in the company who is an indian citizen and resident of India in the previous calendar year.


A partnership firm can be easily converted into the limited liability partnership firm according to rules defined below –

A form 17 is needed to be filed along with the form 2 for the conversion of the partnership firm into the limited liability partnership company.

One should note that an existing partnership firm by complying with the provisions of clause 58 and schedule 2 of Limited liability partnership act can be easily converted into a limited liability partnership company.


As per the Limited Liability Partnership act,2008, The minimum partners required to incorporate a limited liability partnership firm is two and there is no limit for the maximum number of partners.


According to the new companies act,2013 a foreign limited liability partnership company can easily establish a business in India.The process involves filing of form 27 with the ROC.

The form includes various details such as foreign LLP incorporation , two authorized representatives ,designated partners for compliances under the act.


The advantages of forming limited liability partnership companies are defined below –


The basic and foremost advantage is that LLP includes features of both partnership firm as well as the company.Therefore both the types of feature are available here.


  The cost involved in the incorporation of the limited liability partnership company is very low.


 In LLP there is no limit for the maximum number of the partners and minimum required partners for the incorporation is two.


 There is no mandatory audit to be done in LLP unless the turnover exceeds Rs. 40 lac. And the capital contribution exceeds rs.25 lac.


 There are very few records to be maintained i,e only the books of account are needed to be maintained.


 In the case of LLP , the partners’ liability is limited to his shares and therefore the personal assets of  every partner is safe and secured.

Decoding the benefits of registering a Business

Decoding the benefits of registering a Business

There are lots of benefits which are there of registering a business in India and they are as follows-

  1. It gives you a structure- By forming a new company, it gives you a better structure of business, like suppose if you want to open a one man company then you can go for One person company formation, or if there are Partners in your company then you must opt for a Partnership Firm and by forming a company, it helps in smoothly running of a firm.
  2. Without structure there is no order in the company and therefore it affects the profit margin of the company. Therefore when we talk about business then we must focus on how must give a properly organized structure to your business idea.
  3. By opting for a registration of company, it gives a separate entity to your business, as you get certificate of incorporation which can be called as a Birth Certificate of your newly formed company.
  4. There is perpetual existence of a company, like when we open a startup , then everyone one only wants to make money but also they want to establish a legacy. When a business is registered it gives a separate entity. If and when the owner of the business dies the business can continue to exist. Its ownership can be transferred to another Director, or it can lie dormant.
  5. Registered business are more trustworthy, basically unregistered business is worthless as before doing any business, anyone wants to have safe business and they do not want to lose in their services, therefore registered business are termed as more understandable as compared to the unregistered one.
  6. Limited liability partnership is probably the most overused terms when it comes to “ benefits of Business Registration”, however people are still fuzzy about its meaning. So Limited Liability means that a company is a separate legal entity and it has to bear its own losses.


When it comes to business registration, there are many but when we talk about its benefits, there we lack, I hope that through this blog we have enlightened you with the understanding of what the benefit actually means.

What Is Trademark Rectification ?

What Is Trademark Rectification ?

What is Trademark Rectification?

Trademark rectification is needed when there is a need for any kind of alteration, change, modification or rectification in the registered mark or in the register of trademarks, or rectification of the trademark register by such aggrieved party.

Trademark rectification rights in India is governed by chapter VII of the trademark Act, 1999. Under section 57 of the Trademarks Act, any person who is aggrieved by the entry in the trademark register can file for trademark rectification before the registrar of trademarks. However, in certain cases consequences can be cancellation of trademark registration.

Who can file Trademark Rectification?

  1. It can be filed by the owner of the trademark itself, or
  2. It may also be filed by the party or entity being aggrieved by such entry.

Common grounds for filing Trademark rectification in India

  1. Due to latest knowledge or advancement
  2. Due to non-use of registered trademark for over 5 years by the registered owner.
  3. Due to non-renewal of the original or previous registration of the trademark.
  4. In cases where inclusion of addition of certain more classes of goods or services to the business gamut of the registered trademark.
  5. Conditions which are beyond any more grounds stipulated in section 9 and 11 of the Indian Trademark Act, 1999.
  6. The certain omission of any entry eg, a disclaimer, condition or limitation.
  7. Where the registration is obtained by misrepresentation of facts, similar to an earlier mark registered and lacks sufficient cause for registration.
  8. Cases where mark was wrongly remaining on the register and causing or likely to cause confusion.
  9. When the renewal fee has not been paid.

Procedure for Trademark Rectification In India

Procedure for Trademark rectification in India includes following hings-

In cases where trademark registry has marked the trademark application as Formality check or send back to EDP, therefore in this case option of rectification and of being is being given and it requires to be resubmitted. In such cases, rectification deed is required to be prepared to address all the concerns of the trademark examiner-

  • TM-O form is required to be filled in order to file trademark rectification.
  • Make sure that your trademark rectification application is a clear and crisp statement of grounds related to the application.
  • You must support your arguments with strong evidence to support rectification of the specified trademark.

We have immense and diversified experience in handling Trademark rectification cases and shall suggest more professional ways to avoid trademark rectification. 


peer to peer lending license

The Peer to Peer lending can be defined as a mode of business where a platform in digital form is provided to an individual or an entity for raising loans or fund at certain interest rates and is needed to be paid back as per the specified terms and conditions.The interest rates are either set by the lending organization or after mutual discussion between the borrower and lender etc.

In India ,the Peer to Peer[P2P] lending business has been extended to 5 billion dollar as per the reports being concerned.Therefore the entrepreneurs and startups business can easily avail loans from this platform without much documentation.

In such  lending there is no involvement of any financial institutions and banks and the lenders are free to choose the borrowers whichever they want to give loans. This form of lending money is getting very famous among investors as they get a higher rate of return through the Peer to Peer[ P2P] lending business.

The Peer to peer lending companies are being regulated through Reserve Bank of India [RBI]and therefore reserve bank of India reserves  power for providing lending license to the applicant.


There are namely 03 types of model being defined below ;


The consumer loans involve small personal loans taken by the individual for purchase of car , bike , marriage expenses , home repairs , Repayment of credit card etc.


The loans provided to small businesses for various purposes such as asset finance , working capital , business to be extended etc .


Under this lending ,the applicant borrows loan for purchase of property ,commercial ,refurbishing of house etc .

In india one needs to fulfil certain conditions in order apply for the peer to peer lending license-

1] A company should be registered 

2]The applicant shall have adequate amount of capital structure 

3] The applicant company shall have technological , managerial , 

4] A pure motive to serve the public and its interest 

5] a proper business layout and plan 

6] The board of directors shall fulfill all terms and conditions of RBI


Any company being registered as private or public limited company can apply for the license with the reserve bank of India.They need to fulfill the conditions below –

1] The applicant company must be registered as a private or public company under the eyes of law and have an objective of doing financial financing of money.

2] The Minimum net owned fund should be Rs.2 crore .

3] There should be efficient information technology system i.e mobile application for the workflow 

4] The online application form is available at the RBI website. 

5] The hard copy of the application together with required documents to be submitted to the office of the reserve bank of india.

6] After doing detailed and vigilant verification of the application and documents attached with it , the RBI provides the license certificate to the applicant company .


There are various merits and demerits of peer lending platform for both borrowers and lenders and these are highlighted below –



1]  The first and foremost benefit is the amount of loan received is either at fixed rate of interest or low interest rate as compared to other financial institutions .

2] The documentation is very simple and easy as compared to documents required while taking loan from financial institutions 

3] The fees and other charges required are low as compared to banking institutions


1] There is high use of information technology and there is a lack of security as documents can be leaked or information can be wrongly utilized.

2] The amount of loan provided is less as compared to the financial institutions.



1]  The return of the investor is higher as compared to the risk taken 

2] The investor is happier as he has diversification and more places available to invest his capital and earn more.

3] In peer to peer lending ,the lenders communicates with the borrower directly to finalize the deal


1]The risk factors involved here are higher and uncertain as compared to the banking financial institutions

2] The returns are lower in comparison to public traded index fund

3] The future possibilities are uncertain and unrealistic and it’s too early to make future opinions of this type of industry

What Is Joint Venture ?

What Is Joint Venture ?

In today’s business World , every Organization  focuses on the expansion of its business and enhances its revenue in a small period of time . In such a scenario , Joint Venture agreement Plays an important Role .It can be defined as an agreement that includes two or more parties agreed on a common prospective with  better utilization of resources in order to achieve desired target or outcome.

There is a difference between joint venture and Merger as merger leads to transfer of ownership whereas in case of Joint venture there is no such case of ownership transfer.

Joint Venture can be classified in two types namely –

1]Equity Based Joint Venture – It can be defined as an agreement between the two companies to enter into a separate business venture together .Each partner participated in gains and losses according to the percentage equity ownership they have as per the agreement.

Equity joint venture is one of the best mediums  the best way in which a foreign company can establish its business in India and it is also fruitful for an indian company as it gets the required amount of investment and technology due to the venture.

Contractual Based Joint Venture – It can be defined as an agreement in which two parties come together for a particular business project and sign a contract with terms that define that  they will be together for that particular project only.

The franchise Business is a great example of Contractual Based Joint Venture that includes franchisee and franchise owner entering a joint venture for a specific project that has no resemblance to their individual work or business as it will carry on in a similar manner .

Checklist before entering into  Joint venture –

A] A Proper and deep research work to be done on the Business activities of other company

B] SWOT Analysis is mandatory to be done our business as it provides us important knowledge of our ongoing business in terms of strength , weakness , opportunities , threats of the company

C] One should also compare the working model and criteria of his company with the one you are going to be in venture agreement 

D]  A view of the management and its employees should always be taken into consideration

Process of Joint Venture 

1] The selection of an accurate and right partner is the first and most important step for having  a successful Joint venture . The culture and working module of a proposed partner should be similar with your organization or company.

2] The second step leads towards signing a memorandum of understanding {MOU}  that defines terms and conditions on the basis of which both parties are entering into the Joint venture agreement .Each and every point that defines the need of Joint venture is marked here.

3] Joint Venture Agreement and MOUs should always be drafted in the Presence  of Corporate law expertize.

4] All Details such as type of firm ,source of funding , stake of shareholders , contribution of intangible assets etc. should be mentioned in the joint venture agreement .It should also include the exit Strategy of the involved parties as they might try to dissolve the venture.

5]The next step is the selection of name for the Joint venture with the consent of both the parties 

6]After formulation of Agreement ,  the last and final step is to register the company and the articles of association.

Important Clauses to be mentioned in Joint venture Agreement –

There are some important clauses that should always be highlighted  in the Agreement are provided below –

1] The amount of capital being invested by the involved parties in the joint venture 

2] It should be mentioned how the profits, losses, liabilities to be distributed 

3] Mentioning the responsibilities and work of parties involved in the venture

4] Mediating mechanism and procedure to be followed in case any dispute may arise in future 

5] Proper data to be maintained of the new venture that include administrative and financial records

6] Exit Strategy should be mentioned in case both the involved parties are ready for dissolution of Joint venture.

Opportunities /Advantage of Having Joint Venture Agreement –

The joint venture Agreement provide various advantages  being highlighted below –

1] The new joint venture agreement provides opportunities to involved parties such as access to new resources in terms of technology , experience and talented staff , modern assets and equipment  , capital investment etc.

2] It also leads to a new client or customer acquisition  for involved parties which might not have been possible before being entered into agreement .

3] It also leads to sharing useful ideas , opinions , and information which will be beneficial in terms of growth and development of the new business.

4]  Due to two or more parties involved , It also enhances the workforce level and speed of production of the organization.

5] In case one of the companies  involved has a better reputation or goodwill in the market it will ultimately provide assistance to the other company to enhance its image and reputation in the market.

However it should be kept in mind that if Joint ventures are improperly planned  then due to certain aspects like poorly drafted contracts ,cultural differences , misunderstandings between the parties  it may lead to the termination of agreement.

Disadvantages of the Joint Venture Agreement –

Basically joint ventures have more advantages compared to disadvantages but one should keep an eye on the disadvantages while entering into joint venture agreement. Some of the disadvantages are as follows –  

1] Liability – 

In case of joint ventures there is no liability protection being provided to the businesses involved 

2] Unequal Involvement-

Both the parties involved in joint ventures do not share equal involvement in the business activities and functioning . For example – When one company is monitoring the production department and the other is responsible for the sales and marketing department .Therefore the responsibilities of both companies differ and as a result the involvement period is also different.

3]  Objective –

The  objectives of joint ventures are not clearly defined among people involved in the joint venture agreement.

4] Cultural Differences –

In joint ventures two parties are involved and both the parties have different Management teams and carry different working styles  and due to this difference of management culture it may lead to poor cooperation and integration of both parties.

Termination of Joint Venture Agreement –

The various factors that may lead to the termination of joint venture agreement are as follows –

1] The parties involved are not able to solve the disputes arising between them 

            2] Breach of agreement is done by one of the parties involved in the agreement 

            3]Due to Insolvency 

            4]The Project being defined in agreement is being finished or completed 

The termination policy and rules of the joint venture should be clearly stated in the agreement and in case a joint venture is being terminated due to default of one of the parties involved then the other party shall have the opportunity to get remedies or relief for the losses incurred from other party.

As per the conclusion , it shows that Joint Ventures provides numerous opportunities and advantages to the business involved in the agreement to come together to share their capital , ideas , resources , technology ,equipment ,expertise etc. in order to develop a desired project.

Therefore a proper Agreement is needed to be drafted in order to have a successful joint venture while improper drafting of Agreements may lead to the termination of Joint venture agreement.

Decoding the benefits of registering a business

Decoding the benefits of registering a business

Incorporating or Registering your business idea is not a bad idea in India as it gives a strong foundation to your business aspirations so that you don’t come crashing down.

Benefits of Business Registration in India

Registering a business has importance everywhere in the world, but it is India where it is more significant. The major benefits of registering a Business in India are as Follows-

  1. It Gives you Structure- when you register a business in India then you give a proper structure to your business. As without proper structure there is no order in Business and therefore, there is hardly any profit. Without a proper business criteria there is no business conducted properly. Therefore, it is always advisable to register a business for the proper and smooth brunning of your business.
  2. Separate Entity- It forms a separate entity once you form a separate business.  Once you get the certificate of incorporation, you apply for PAN card in the name of the company which is considered as a Valid ID of the company. 
  3. Perpetual Existence- we live in an era of startups, everyone not only wants to make money, they want to establish a legacy. When an entity is registered then it becomes a separate entity. Therefore, if and when the owner of the business dies , the business can continue to exist.
  4. Registered Business are more trusted- generally a business which is a registered one is trusted more are compared to the unregistered one. We are not saying that unregistered business are worthless, but they are hidden more,less advertised, less marketed and therefore, less trusted. However once you have registered your business 

, you are free to reveal yourself and market yourself.

      5.  Trust then leads to more funds- If you have trust of the people then you would have more trust of the investors and Financial institutions as well. A business cant survivev on the personal assets of its owner, it needs outside funding for expansion, diversification. Being a registered business attracts more investors towards you, who see your business a legitimate one. 

       6. Limited Liability-  Limited liability is probably the most used terms when “Benefits of Business Registration” is the topic. however , people are still fuzzy about its meaning.

A company is a separate legal entity, then is its own person has only has to bear its own losses.

The above statement basically means that if the company goes through any loss on finances, personal finances or assets of the Directors of this company are not affected. 


When it comes to the business registration benefits there are any, but what is lacking is the understanding of these benefits. Hope that through this blog we have enlightened you with the understanding of what the benefit actually means. For Registration of Business please contact BIATconsultant.com.

Requirement for Forming a State Co-Operative Society

credit co operative society registration

A state cooperative society is defined as an association of persons who united voluntarily to meet their common economic needs and aspirations as specified from time to time depends upon the nature of society, through a jointly owned and democratically legal identity registered under the Cooperative societies Act.

What are the kinds of Societies in india?

  1. Credit Cooperative societies
  2. Consumer cooperative societies
  3. Urban cooperative society
  4. Marketing Cooperative Societies
  5. Industrial Cooperative societies
  6. Labour cooperative societies
  7. Transport cooperative societies
  8. Security services cooperative societies
  9. Group housing societies
  10. Cooperative societies formed by professionals in the area of Art, Education, Insurance etc.

What are the requirements for forming a Cooperative Society

  1. A minimum number of members required depending upon the nature of the Societies
  2. Minimum share capital required depends on the nature of the societies
  3. The object of the society must be the promotion of the economic interests of its members in accordance with the principles of cooperative society.
  4. A society which was proposed to be registered must be economically capable of being run by own.
  5. Proposed society must not have any adverse effect on co-operative movement.
  6. Subscription of the minimum amount in the form of capital is required for prospective members depend upon the nature of society and as per bye laws.

What are the Documents Required for Registration

  1. Proposed name of cooperative society
  2. Name, address, profession, the monthly income of promoter members
  3. A Bank Certificate to the effect that from the share capital raised by the promoters has been deposited in a suspense account in the name of proposed cooperative society.
  4. Proposed bye laws of the cooperative societies must be duly signed by each of the promoter members (4 copies)
  5. An affidavit of chief promoter for proposal pf approval of the Registrar on the prescribed form.
  6. Promoter member list who have subscribed capital together with the amount contributed by them.
  7. A declaration of each of the members that he is not the family member of any other promoter.
  8. Proposed cooperative society scheme including woking which reflects economic soundness of the proposed cooperative society.
  9. A statement of each member reflecting his financial position
  10. A residence proof of members in the area of operation of State Cooperative society.
  11. A certified copy of the resolution of members adopting the bye laws and authorizing officer who can make modification in proposed bye laws, if suggested by Registrar in process of Cooperative society Registration and member’s resolution will also specify the name and address of the person for any correspondence in process of registration and deliver incorporation certificate.

What will be the procedure of Registration/

Persons who want to register a State Cooperative Society will make an application to the Registrar of the area on a prescribed form i.e. Form 1.

Along with the form type of the society they want to register, proposed bye laws of that society, number of members, chief promoters name and address.

The application must be signed by not less than 10 persons or by a number of members depends upon the nature of societies.

If the Registrar is satisfied will register cooperative society and issue a certificate of incorporation.

Where Registrar refuses then from the date of receipt of an application for cooperative society registration within a period of one month registrar is required to communicate for refusal with valid reasons for such refusal.

The application shall be deemed to have been accepted for co operative society registration with the application for registration is not disposed off in a manner prescribed within a period of one month.

Redressal mechanism and Penalty provisions against Collective Investment Management Company (CIMC)

collective investment scheme

A Registered CIMC is entitled to raise funds from the public for a particular scheme, and in return to this shares or units are given to the people and these units are given in proportion to the contribution made by the investor. Further, by law these units have to be compulsorily listed on stock exchange.

What is meant by Collective Investment scheme?

A Collective Investment Scheme as the name suggests means that it is an investment scheme wherein several individuals comes together to pool their money for investing in a particular assets and for sharing the returns arising from that investment as per the agreement enforced between them prior to pooling in the money.

A Registered CIMC is entitled to raise funds from the public for a particular scheme, and in return to this shares or units are given to the people and these units are given in proportion to the contribution made by the investor. Further, by law these units have to be compulsorily listed on stock exchange.

As a guarantee, SEBI cannot guarantee we undertake the repayment of money to the investors invested in CIMC.

Whom to approach for any Grievance Redressal

For any grievance approach, Applicant must approach CIMC first and then to SEBI, if he is not satisfied. An investor can also approach District consumer redressal forum in case of any deficiency on part of company. 

In certain cases where company fails to repay the deposits collected by it , then it should be settled as per section 58A of Companies Act, 1956. Then, SEBI in no way can help the investor in any manner as it is out f the purview of SEBI.

After obtaining the registration, as CIMC, SEBI shall issue a press release furnishing the details of CIMC like the name, address, and contact number of that registered entity and same shall appear on SEBI’s website i.e. www.sebi.gov.in.

What are the Penal provisions if a registered CIMC violates certain provisions of the Regulations?

If a registered CIMC violates any provisions of the regulations, then in such case action like, suspension or cancellation of the certificate of registration may be initiated against the registration of the company. Further, SEBI in the general interests of the security market and the investors at large, initiate criminal proceeding under section 24 of the SEBI Act, in addition to the passing of some stringent directions like-

  1. Prohibit the company to Collect any money/fund from an investor or to launch any new scheme further.
  2. Prohibiting the company from disposing of any of the properties/assets of the scheme acquired in violation of the regulations.
  3. Requiring the company concerned to dispose off the assets acquired under the scheme in a manner as advised in the directions.
  4. Requiring the company concerned to refund any money or the assets to the concerned investors along with the requisite interest on it or otherwise, collected under the scheme.
  5. Disallowing the company concerned from operating in the capital market or from entering the capital market for the specific period.

As we can see above, that the penalty imposed are very high and it is very difficult to violate the rule, norms or regulations. This will insure the safety and risk free environment for the investors.

A better Choice For Raising Funds for MSME

A better Choice For Raising Funds for MSME

In the present scenario loans extended by the NBFCs to MSMEs grew rapidly and the experience of banks and NBFC in terms of quality asset explains the difference in the credit growth.

What is NBFC

NBFC is basically Non Banking financial institutions which is registered under the Companies Act, 2013 with principle objective of dealing in financial activities. Companies Financial asset shall constitute of more than 50% of the total asset and income, and Income for Financial statement constitutes more than 50% of gross income.

What is MSME

MSME stands for Micro and Small and Medium Enterprise. It has many benefits as it is given higher preference in terms of Government License and Certification.  MSME also avails benefits in bank loans as compared to the interest paid on regular basis.

Role of NBFC P2P in India’s Economic Development

It helps in the supply of credit in the economic growth of economy, and it helps youth as it helps in achieving of cheaper and faster credit. The new entrants entrepreneur with the ability to repay the loan, are provided with the facility of dedicated loan products from various online platform.

In the current scenario as we can see that man and women are equal, therefore its purpose is to be to empower more and more women as it not only increases the economic development and prosperity but also a good indicator in the development of the entire household.

NBFC P2P helps in connecting and lenders with the borrowers by using the digital platform. For faster decision making and implementation, NBFC P2P has cut through end number of process which ensures interest of both lender and borrower. 24 hours banking facility is available for borrower.

Why NBFC P2P a better choice for raising funds for an MSME these days?

NBFC environment has now been changed as it provides larger opportunity for income seeking investor to diversify their portfolio which was earlier available to the Banks. Potential and e investor dealing in MSME sector are considering P2P platforms for various reasons-

  1. Returns which are provided are highly competitive when considered against average returns delivered by other market linked investment like MFs and stock market.
  2. In this process, both lender and borrower can choose their specified period of time between 6 to 36 months.
  3. It provides diversification that can easily be attained by borrowers profile.
  4. Availing more options for small business where in starting money is required for the temporary shortfall or to meet out the revenue expenses.
  5. It bridges the gap of risk factor involved in funding the small business, as small business srae dependent of cash transactions.


NBFC P2P player has becoming more popular in MSME and in small business financing. It lends fund to the business of MSME by better choice to avail funds. NBFC manly focuses on young entrepreneur with potential and business ideas. It also empowers women entrepreneurs which also helps in increasing and improving economic growth of the country. Therefore, it can e said that P2P is the better choice for availing funds to meet out the revenue expenses and working capital requirement.