Need a Instant Personal loan
in a hurry? peer to peer personal loan
might be the answer!
There
are times when you need funds in a hurry, but are confused where to get them
from. Banks take their own sweet time in processing Online Loans applications, and
they may even reject your application in some instances.
Where do you go next? The answer could be peer to peer personal loan, or market place loans.
There
is a buzz around this term in recent times, and here we try to explain what peer to peer lending
is, hope to answer a few of the questions you may have.
What is peer to peer lending
companies?
P2P
lending enables people to Short
term Loans online, through a trusted platform like LenDenClub. These loans
are funded by other individuals or institutions. All you have to do to get loan
on such platforms is to give a few basic details on yourself, upload a few
documents and the platform will do the rest.
Platforms
such as LenDenClub do a due diligence on your profile, with proprietary
algorithms that include a number of parameters including your credit scores.
Since these algorithms differ from the way bank screen your loan application,
you have a higher chance of getting lenders for your loan.
What are the
rates for a peer to peer loan?
The
rates are an output of a comprehensive credit scoring methodology and are
personalized to your profile. They may differ as per your circumstances, and
are different for different borrowers
Does applying
for a P2P loan affect credit score?
Unlike
banks and other financial institutions, who do a hard inquiryeverytime they
receive your loan application, P2P lenders who are the best online lending sites such
as LenDenClub do a soft inquiry and hence do not leave a mark on your credit
score.
Platforms
like LenDenClub also have recovery support and, lenders can be sure to receive
help when there is a loan default or a delay in payment.
Is the information shared with
the online lending platforms confidential?
When
you sign up as a borrower on a platform such as LenDenClub, you may be asked to
provide supporting documents on your income, your bank statements etc. These
are used by the platformto ascertain whether you will be able to service the
loan repayments regularly.
This
information is never shared with any prospective lenders by the platform. You
can be rest assured that your information is safe!
How long will
it take for the loan to get funded?
P2P lending platforms
such as LenDenClub work on a marketplace model,i.e. they will list your loan on
the platform and lenders will show an interest to fund the loan. One of the
things you could do to make your loan application more attractive to a lender
is to give in details on your requirement, highlight your assets, income
sources and be honest about your other obligations.
The
more transparent your listing is, the easier it is to convince the lender about
your need and hence fund your loan quicker.
If you still have more questions on how to go about applying for
a loan online, please feel free to connect with us at cs@lendenclub.com
Read more at : https://www.lendenclub.com/peer-to-peer-lending/
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