All about P2P Lending Platform
Peer to Peer lending, commonly known as P2P is quite a simple way to get loans. Here, the money seekers get loans straight from individuals, called peers, instead of a classical financial organisation like bank. Peer to peer borrowing is advantageous, flawless, smooth and hassle-free and unquestionably win-win for the borrowers. There are a few reputed P2P lending platforms like LenDenClub where borrowers and lenders can connect and discuss their needs and aspirations in this regard.
P2P platforms help borrowers enjoy a few exclusive benefits
1. No Problem with Low Credit Scores
The most important advantage for borrowers of using P2P lending is that even people with low or poor credit scores can get loans seamlessly. When people with low credits approach banks and other financial institutions for a loan, these institutions may refuse for lending money and folks with such low rankings may land up in trouble while applying for a loan.
2. Lucrative Interest Rates
Peer-to-peer forums provide borrowers very economical and modest interest rates depending on their credit background and refund timeline.
3. Quick Speed of Approval
Lending money through P2P sites is faster, as compared to traditional processes. Loan seekers don’t have to withstand a lengthy waiting period for approval and to acquire the loan disbursement amount.
4. Economic Affair
Peer-to-peer lending websites like LenDenClub levy just one-time origination charge to validate borrowers and loan details. It is estimated that P2P loans are almost 70% cheaper than regular loans and credit card advances. Another benefit of using peer-to-peer lending is that one will not have as many charges involved. When a borrower applies for a loan with a standard bank or money lending institution, they will impose an application fee, processing fee and numerous other fees. One can also go for an early payoff without extra or penalty charges.
5. Exposure to Wide Network of Investors
Peer to peer lending in India offers exposure to a wide network of investors. Even though many lenders won’t trust to lend their money to people with poor credit score, there will be many other lenders who will be ready to take the risk.
In a nutshell, the borrowers achieve a lot of benefits while lending from P2P platform. The summarised advantages are easy application and seamless sanction process. Every borrower gets easy and quick access to cash, and the interest rates are less expensive as compared to banks. Moreover paying off is also less expensive and hassle-free as the sites like LenDenClub do not impose any extra charges.