Peer to peer (P2P) lending is an emerging industry which has revolutionized the lending platforms worldwide. Borrowers and investors can be equal beneficiaries from its experience. Investors lend money, and they earn the profit as the borrowers pay interest.
Inauguration of Peer to Peer Lending
Zopa is the first peer to peer lender which initiated the industry in the United Kingdom, 2005.
Company Offers Platform
There are numerous companies providing peer to peer lending platforms to investors and borrowers.
Online Marketplace
Peer to peer lending is an online marketplace. Open the PC and contact the hundreds of thousands investors and borrowers very quickly.
Characteristics of P2P Market
- Earn Profit
- No need for prior healthy relationship between lender and borrower
- Companies work as brokers
- Online Transaction
- Some advantages also come with P2P platform
Middle Man or Broker
Investors and borrowers formulate the terms and conditions. They don’t need the assistance of any third person. Ultimately, they don’t have to pay to the broker for services.
Easy Process
This marketplace facilitates all interested people. They don’t confront barriers like extensive documentation, guarantee, and time-consuming process of lending money.
No Need of Middle Man or Broker
Investors and borrowers formulate the terms and conditions. They don’t need the assistance of any third person. Ultimately, they don’t have to pay to the broker for services.
Alternative to Traditional Loan Provider Mediums
Peer to peer lending is a more profitable and reliable medium to secure loans and invest money for significant returns. The means of earning and spending money are changing at the fast pace; you must walk with them to enjoy the life.
Funding for Any Industry
The borrowers can take loans and invest them in any industry. They don’t have to comply with the restriction regarding the investment of the borrowed money.
No Higher Interest Ratio
The traditional banks charge higher interests as compare to P2P. The borrowers have to confront penalties if they couldn’t pay the loan. However, peer to peer marketplace is very flexible when you take into consideration the rules and regulations.
Simple Application
A person who is interested in (P2P), he/she can have to provide some personal information. It is the effortless application that any person can fill it quickly.
Personal Connection
Peer to peer industry is building relationships. Investors and borrowers remain in contact with one another. Often, they share confidential info, and there is a bond of friendship among people.
Use the Credit Card
Different factors affect the interest rate. You can use the credit card, banks or the credit union for receiving the loan. The usage of the credit card a productive because the borrower has to pay less interest with it.
Charitable Aspect
The kind-hearted and generous can decrease the interest when he/she knows the pathetic condition of the borrower. The characteristic of the building of relationships in this marketplace takes it out of the crowd of other such trades.
All these features make the peer to peer industry only one of its kind. Join its community to enjoy the benefits.
