What is Peer to Peer Lending
by Finway FSC Empowering People FinanciallyPersonal
Loan in Delhi and other cities of the country is a great way to answer the
financial needs arising adhoc. It is this reason why so many avenues and
sources are there which provide loans to the customers. P2P is one such source
that is now common in all parts of the country. It is important that we
understand what a P2P lending is and what are the advantages and disadvantages
involved with it.
What
is Peer to Peer Lending?
When
money is borrowed without any intermediary source, this is called P2P. In this
case, businesses, and individual operate without any formal paperwork. This may
sound risky as most of the loans provided by the P2P source are unsecured
loans. This is done through an online chain of work where a potential borrowers
begins by filling up a form stating the need for a loan. After the application
is received, it is checked and interest rates is discussed upon. Post which the
application is approved and the applicant can get the money after discussing
the way the money will be transferred. The credit history, in the process, is
checked and based on which the interest rates are levied and Personal Loan in
Delhi and India disbursed.
Advantages
of P2P
High
Return in Investment: The investors usually get a higher return as the interest
rates although low, but does not involve any other fee. The investors are
usually looking for small profits through this loan lending way.
Accessibility:
With more accessibility to the online platform, it is considered rather easy
way of lending and borrowing money from the investors. An Emergency Loan Online
can be attained through this source.
Lower
rate of interest: With a competitive market, the investors charge a low rate of
interest. This makes it easy for the borrower and relatively profitable for the
lender too.
Disadvantages
of P2P
Insurance:
In case of default by the borrower, there is no rule that a government should
intervene and insure the lender's interest so Emergency
Loan Online cannot be provided.
Risk:
With the maximum number of borrowers applying for P2P they have a low credit
history. The lenders do not check this stringently and often risk their money. Lenders
must check the defaulters and then extend the loans.
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Created on Oct 29th 2019 05:18. Viewed 445 times.