If there is some magical way available to make money, it’s to invest wisely. With growing opportunities and scopes for each effort someone makes, people look for potential investors. When it comes to selecting an investor, people look for its potential and judge reliability.
There are so many ways available to test the potential and trustworthiness of the investors. However, the most preferred way for the financial experts in modern times is to consider the peer to peer profile of the lender. Following are the top 4 reasons that are responsible for making the P2P portfolio of the lenders so much valuable:
1. These are authorized
Peer to Peer lending clubs in India like LenDenClub are growing big and popular. With P2P transaction being acknowledged by the RBI, these lending companies have become even more trustworthy.
In addition, the lenders over here are considered most trustworthy as the P2P lending platforms list only the verified profiles for the borrowers. The lender profiles have to pass through both digital and in-person verification.
2. Every detail at one place:
One of the prominent reasons behind financial advisors considering the P2P lending profile of the investor is due to their proven track record. As the lending clubs make details about the lender, like the amount of loan he has sanctioned, number of happy customers he has dealt with, etc. available over the profile itself, it becomes easy for a borrower to gauge the true potential of the investor (lender).
3. Quick transaction:
Transactions in contemporary times are quite swifter. As following the hefty formalities of the banks is a tedious task, as well as delaying, the borrowers these days look for the faster alternatives like P2P profiles. The financial advisors prefer going through the P2P portfolio of the investors as these portfolios make it evident about how habituated are they about quick transactions.
4. Scope to look for a better opportunity:
As the popularity of the P2P transaction is growing significantly, the competition among the lenders is also quite obvious to grow. In fact, some peer to peer lending companies in India have thousands of lenders over their platforms. It is obvious now for the competition among these lenders to grow to invest their money.
The advantage of such competition goes to the borrower only. For example, if you are ready to compensate at a greater interest rate, investors compete among themselves to pay big amounts. Again, as the number of alternatives in terms of lenders is pretty big with such platforms, the borrower gets the opportunity to go with the one offering loans at the minimal interest rate.