Peer to peer (P2P) lending is an online marketplace that connects lenders (people who have savings) in contact with borrowers who require funds (in in the shape of loans for personal use). This Fintech technology is revolutionizing the ways credit marketplaces operate. By completely bypassing banks and allowing faster borrowing and lending. Investors get better return on risk while borrowers receive fast credit at low interest rates. Because it’s an app online platform that allows two parties to are in contact, you can sign up as a lender or as a borrower.
Personal loan applicants can register online. P2P lending platform. P2P lending platform makes use of technology and data to determine the creditworthiness of a potential borrower. You will be assigned a risk classification and a suitable interest rate following your credit assessment. Credit-worthy borrowers get loan disbursed in minimum possible time. If you sign up as an investor or lender, your account will be created through this lending system. You can begin investing in consumer loans starting from the amount of 15K. You can leverage your position to choose the loan you want to invest. You can create your portfolio by selecting loans from a variety of risk classes.
When the borrower begins paying interest, you get the return as EMIs (principal as well as interest). P2P lending provides inflation-friendly returns many percentage points higher than bank savings accounts or fixed deposits. You can choose to withdraw or invest to reap the compounding advantages.
What is it that makes P2P lending different?
1. Online Application Procedure: Money Lending Online is a quick and easy way to access capital in the kind of loans for personal use. It’s completely different from the traditional loan approval process used by Credit unions and banks, which requires you to apply manually through lengthy forms and then visit banks to check the status of your loan. With P2P lending, the entire process of loan application is done online. It is all you have to do is sign up on the site to sign-up as an applicant. After you have uploaded all the required documents, your loan will be approved based on your credit score and the eligibility of your loan.
2. Easy loan approval Credit unions and banks examine your loan eligibility only by your credit history (CIBIL score). Money lenders online use alternative data to determine your creditworthiness such as your education level and income per month, your credit-to-income ratio, and any other financial parameters that are relevant to you.
3. There is no collateral requirement: P2P lending provides personal loans. There is no requirement to pledge collateral or make any other deposit to be approved. In the event that you don’t pay back the loan in a timely manner, you’ll certainly be subject to legal action, but there’s no chance loss of your home.
4. Lower rates: Loan providers charge lower interest rates than institutions like banks. Through P2P loan platforms you can benefit from lower rates and low service charges (if there are any). P2P lending firms don’t need to pay the same overhead like banks, so they do not have the same regulatory expenses. In the end, you pay no interest rates on personal loans.
Are you looking to apply online?
Peer to peer lending is direct communication between lenders and borrowers, eliminating the necessity for intermediaries. When applying for personal loans through P2P lending platforms, make sure that you conduct a thorough research online. Select a reputable and accredited platform. If you’re thinking of becoming a lender, make sure you invest with care after carrying thorough due diligence on each risk type to ensure higher returns.
Faircent is the largest Indian virtual marketplace online that connects borrowers and investors. When you sign up to the group that consists of Online Money Lenders in India you will be able to reap the advantages of a smart method to get better returns on your online Investment. Small and large-scale business owners as well as individuals can access personal loans on flexible terms , and at low fixed rates.