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Yes, it is. With platforms providing top-notch crowdfunding services in India to NGOs and individuals, crowdfunding is very much legal. However, it is the kind of crowdfunding that puts the law under question. SEBI’s consultation paper on crowdfunding released in 2014, recognizes 4 kinds of crowdfunding models: Social lending/Donation crowdfunding, Rewards crowdfunding, Equity Crowdfunding and Peer-to-Peer Lending. While the first two (donation and rewards) are clubbed under community crowdfunding, the latter two (Equity and P2P Lending) fall under Financial Return crowdfunding (which is a point of contention). Let’s break down each kind of crowdfunding and its legal implications in India.