Lucrative Benefits A Borrower Has, With P2P Lending

In this particular online manual, we are going to see the top four reasons as to how borrowers beat the edge with P2P lending. They come out of the shackles or tight nicks, banks or stringent financial institutions provide them with. Let us move on to see how it happens:

Simple process of filling up an online application form

Peer to peer lending sites just draw out a simple application form that needs to be filled up online. And you are all set, to have your loan money approved. You can apply a loan from an esteemed group of personal money lenders and from anywhere across the globe. Once your loan money is approved, you just have to wait until the money is credited into your bank account. The entire process is made a seamless affair for borrowers opting for short-term personal loans.

Interest rates

Borrowers with lower credit scores are also encouraged to apply for loans unlike the rigid norms followed by banks or financial institutions. So, as long as you have the money to pay, meeting up with the interest component should not seem a hassle, at all. You have an amazing Peer to peer lending company in India named the LenDenClub. Interest rate ranges between 12.5% and 30%. You will be assigned an interest rate as per your creditworthiness determined by the platform.

Speed of loan approval

Banks and financial institutes take a minimum of three to four week for approving even the minutest of minute loans. The reason why you are applying for a short-term loan is that you are in absolute need of money. With so much delay the banks put up with, how will you have money in your hand when you need it the most? Makes sense right? This is where you have peer to peer lending sites coming to your rescue. You will have your loans approved within 24 hours from the time you applied for a loan. This is the magic, a peer to peer company can bestow you with.

Medium-term loans are also taken care of

With a company like LenDenClub, you have loans starting off from Rupees 25,000 which can go upto Rupees 2,50,000. The tenure for re-payment is 3/6/9/12/15/18 months. You can choose the suitable tenure working for you. This way, your medium-term loan requirements can also be satiated.

You see, a group of personal money lenders operating online, can change your lifestyle, all together.

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Amazing Advantages Lie in Store For A P2P Investor

Peer to peer lending is otherwise known as social funding. You select your own set of borrowers to whom you lend money out. Peer to peer lending companies thoroughly eliminate banks and financial institutions which act as middlemen. That is why borrowers and lenders seem to be in a win-win situation, with this form of investment. P2P investments or market place lending has started gaining prominence ever since 2005. Let us go on to unveil some of the most lucrative benefits a lender has, with a P2P investment.

Higher returns on investment

With a growing pioneer leader like LenDenClub, you are assured of a 20-25% returns on investment, with a moderate degree of risk attached. You lend money to borrowers whom you know. Though you can fall under the risk of default payments from borrowers, you have a unique initiative brought out by LenDenClub, which is also known as LPF (Lenders’ Protection Fund). Your capital is given a 100% protection against market or individual instabilities. Whereas your equities or mutual funds provide you with a 15% return on investment. Fixed deposits provide you with 8-10% returns on investment.

Monthly inflows

In a peer to peer lending market the money is credited into your bank account directly. And you are assured of monthly payments falling into your account. With FD’s, or mutual funds, you have your dividends credited every 3, 6 or 12 months. And there is no lock-in period with regard to P2P investments. You can take your money whenever you feel like. With the traditional investments, there is a minimum lock-in period only after which you have access to your principal money.

Spread of risks

Micro-lending is one aspect of Peer to peer lending, which is very attractive to investors as such. At LenDenClub, all you have to invest is a minimum sum of Rupees 5000. Even if some of your borrowers to whom you have lent money, default, you lose out on the bare minimum. In addition to that you have LPF which protects your capital.

You can spread your risks evenly and widely. Say you have lent money to 10 borrowers, Rs. 5,000 each at 25%. If one of them don’t pay his EMI, you will still receive Rs. 45,000 principal plus 25% interest on the same. Due to default by one borrower, your returns will come down by 5%, but you are still netting 20%.So, your risks are diversified and spread evenly.

This is how peer to peer lending companies are able to provide you with better returns of investment over traditional genres.

Why Would You Borrow From A P2P Lending Platform?

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.

Conclusion:

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.