If
you’ve been following the news lately, Peer to Peer companies lending in
India is creating a huge buzz among retail investors and institutional
investors. If you’re wondering what exactly is this Peer to Peer lending and
how will it benefit you, you’ve come to the right place!
Peer 2peer lending sites or peer to peer loans, as the name
suggests, refers to person-to-person. Peer to Peer Lending, in layman
terms means lending and borrowing money between two or more people without any
intermediaries. Usually, a person who has excess money (Lender) lends it to
another person (Borrower) who requires money urgently for a certain period of
time which will be repaid with some interest. So where do peer to peer lending platforms
come in to the picture?
Peer topeer borrowing like LenDenClub connect such lenders &
borrowers and provide help and support to both the parties by charging a small
amount for the services rendered, some of them being borrower assessment,
collection of dues, timely disbursal etc.
How are Peer to Peer platforms different
than traditional onlineloans or financial institutions like Banks and
NBFCs?
Personalloan money lender or moneylending companies worldwide, are taking the banking model and revamping it
entirely to create a favorable lending and borrowing climate.
P2plending platforms in india are cooler version of banks!
Getting
a instant personal loan online from a peer to peer investing is faster, easier and
hassle-free plus you get a better interest rate when compared with banks
because they have massive overheads which include salaries, swanky offices,
ATMs etc. Think about it, FD rates are around 6% and interest that bank charges
is upwards of 12%.
Peer topeer lending companies, on the other hand, don’t have such
overheads hence the lenders make more money on their investments and the
borrowers can get a better interest rate through p2p lenders. A win – win
for both!
Here’s why you should be using P2P platforms
like LenDenClub to borrow or lend money
Borrow:
1. Quick
and hassle-free loan application process
2. Fast
loan approval and disbursal
3. Cheap
interest rates
Lend:
1. Earn
great returns on investment within a short span of time
2. Bypass
the volatility of the stock market
3. Watch
your money grow every month
As
per the trends shown in countries like UK & US, majority of the people are
turning towards best p2p lending indian sites to fulfil their credit needs.
Although at a very nascent stage in India, the P2P industry is projected to be
a $4 – $5 Billion by 2020, as per a report published by KPMG & NASSCOM.
Everything said, Peer to Peer lending is here to stay and
if you haven’t been a part of this financial disruption then now is the best
time with the RBI supporting p2p lending sites india and promoting it.
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