P2p online money lending in India
by Monica Jain P2P Online Money Lending IndiaP2p online money lending in India is becoming the talk of the town now. The notion of peer to peer
lending is a unique one. The platform matches borrowers with lenders who are
looking for loans. These loans can be taken for various reasons. Some of them
times when a personal loan can be availed are as follows:
- Education loan
- Auto vehicle loan
- Healthcare loan
- Consumer credit loan
- Pilgrimage loan
- Vacation loan
- Business loan
This has given
plenty of options to the borrowers to apply loan for. The advantages for
borrowers are very much there. It is extremely easy to fill out the application
forms for borrowers. The evaluation of the documents in p2p is very quick as
compared to the traditional banks. The documents which are uploaded by the
borrower are then analysed and then accordingly these loans are then
categorized as low, medium, high risk loans. The loans are then put to auction and
this is the time when the lender can see your profile and fund you accordingly.
This entire process takes very less time than that of the banks. There is
quicker disbursement of loans to borrowers and the interest rates are almost
same as banks. There might be times when the interest rate for the borrowers is
on the higher side, that all depends on the risk category in which the borrower
lies.
The same goes
for the investors where in they can register very easily and can earn interest
rates up to 30% per annum. It is a boon for investors in peer to peer loans as the rate of returns when compared to banks is
extremely high. They enjoy the benefit of their returns in the form of monthly
EMI’s.
The peer to peer industry has been recently
regularized by the Reserve Bank of India. This has helped the industry so much
in standardizing the processes and transparency. The main element which one needs to be
assured is that while investing the investor should know where his money is
being invested or on whom the money is getting invested. This transparency is
well assured in this industry now.
Online
money lenders in India are now on the increase and
there are many companies in line who are seeking the prestigious approval of
the Reserve Bank of India and want to enter this new market. The scope of this
industry is vast as it is estimated that by the year 2022 the peer to peer
lending industry will be worth USD 4-5 billion dollars.
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Created on Nov 15th 2018 12:17. Viewed 398 times.