Loan-Based Crowdfunding Regulation

Licensing & Regulating Loan-Based Crowdfunding Activities

The instructions set forth herein are titled the "Loan-Based Crowdfunding Regulation" for 2023 and shall enter into force as of 08/10/2023.

For the purpose of this regulation, the following terms are defined as follows, unless the context otherwise suggests:

S.No.	Term	Explanation
1	Accredited Investor	Investors that are financially sophisticated maintain a certain level of net worth or annual income, and that are ascertained to have the ability to make sound financial investments, with an awareness of the risks associated with undertaking such financial investments.
2	Business Finance	Any credit or funding which an Investor provides to a business or Borrower on agreed terms to finance a specific project or any other business purposes.
3	Borrower	An entity that has borrowed or is seeking to borrow funds from Investors, facilitated by a Loan-Based Crowdfunding Platform.
4	Campaign (Also referred to as a Crowdfunding Campaign)