Peer to peer lending in India is an emerging concept on the
investment circuit. It is natural that there are many misgivings about it in
the minds of both personal loan money lender and borrowers through moneyborrowing sites. Let’s take a look at the prevailing myths about this
form of p2p lending investment and learn about the actual facts so that
you can make a prudent decision.
Myth 1: Peer to peer lending in India is not
legal
Fact: p2p lending investors is very much
100% legal investment in India for two reasons. First, the peer to peer lending companies in India (for example, LenDenClub) adhere to KYC guidelines by requiring
documents such as PAN card, driving license, passport, Aadhar card, voter ID,
salary slips and bank account number during registration. Second, RBI has
proposed p2p lending sites india regulations, which includes recognition
to p2plending interest rates as Non-Banking Financial Companies (NBFCs) as
well as the protection of the interest of borrowers and lenders though p2p lenders.
Myth 2: The credibility of the borrowers is
unreliable
Fact: Online lending companies in india
undertake a due diligence to verify the profile of the borrowers. They verify
borrowers’ personal, professional & financial details and credit history.
In fact, most of them also do physical personal verification to ascertain the
authenticity of the information provided by the borrowers. In case of any
possibility of default possibility or low credibility, these p2plending companies in india reject to list the borrowers. Also, the
complete profile of the borrowers is displayed on the platform for the lender
to assess from their own investment perspective.
Myth 3: It is difficult to avail OnlineLoan through peer to peer personal loan sites
Fact: Borrowers can take instantpersonal loan online for the purpose of home purchase &
renovation, car purchase, vacation trip, medical expenses, family functions and
any other purpose they deem necessary. The loan can be availed for any amount
as minimum as Rs25,000. Unlike the banks, the registration process happens
online in a few clicks & is very transparent, there are no hidden charges
and the funding is very quick. Also, borrowers can reach out to multiple
personal loan lenders.
Myth 4: Peer to peer lending is same as
crowdsourcing
Fact: Actually, this is not true. While both
are innovative forms of alternative investment and share the same core concept,
their purpose and implementation differ from each other. In crowdfunding with borrow money india, several individuals came together to pool money to fund a
project or an initiative. In peer to peer lending, the investors and borrowers
come together to deal in short-term, unsecured loans. A borrower can borrow loans through InstantLoan from multiple lenders, and in the same way, a lender can disburse
Instant Personal Loan to multiple borrowers. Peer to peer
lending is an alternative to the banking model of financing.
As you can see, peerto peer sites is a very safe, convenient and alternate option for
borrowers and lenders.
For more information
on p2ppersonal loan, click at: www.lendenclub.com
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