5 Reasons to Avail P2P Lending
Peer-to-peer lending (P2P) — aka person-to-person, P2P or social lending — anonymously matches up borrowers and lenders via an online platform using complex computer algorithms. Personal loan amounts typically range from $1,000 to $40,000. Higher amounts might be available for small business loans and lines of credit.
P2P lending platforms act as intermediaries, matching borrowers in need of business loans directly with potential investors. The lending takes place online, on the intermediaries’ website. Peer-to-peer lending (P2P) — aka person-to-person, P2P or social lending — anonymously matches up borrowers and lenders via an online platform using complex computer algorithms. Personal loan amounts typically range from $1,000 to $40,000. Higher amounts might be available for small business loans and lines of credit.
Peer to peer lending can be the answer to all kinds of situations in which you need to get your hands on some cash. Maybe you want to reduce or consolidate debt, buy a car, start a small business, pay for a wedding or replace a washing machine that just died.
You can diversify where you put your money
Peer-to-peer lending isn’t just about lending to individual consumers looking for a loan – there are a growing number of different schemes and businesses you can lend money to.
Easy application
Put in a few pieces of personal information into an on-line application and you can be approved literally within minutes. Apply anywhere you have computer access and upon approval wait for you loan to fund.
Competitive interest rates
Investors will bid on your loan by providing the amount they wish to invest, and the interest rate they want to receive. At the end of the auction, the interest rate is averaged out across all successful bids. What’s more, this rate is fixed for the duration of your loan so you don’t have to worry about rising rates in the future and there are no early redemption costs.
Higher funding rates
Finally, the final benefit to the borrower in the peer-to-peer model is that funding amounts have risen over time, and now can be quite substantial ranging from $1,000 to $35,000. Obviously funding on the higher end of this spectrum can provide funding for a more meaningful project and or purchase.
Repayments
Interest rates are fixed for the duration of the loan, so you don’t have to worry about future rates rises. Even if you accept a higher than ideal rate with a P2P lender and in most cases, there are no penalties for early repayment.
P2P lending platforms act as intermediaries, matching borrowers in need of business loans directly with potential investors. The lending takes place online, on the intermediaries’ website. Peer-to-peer lending (P2P) — aka person-to-person, P2P or social lending — anonymously matches up borrowers and lenders via an online platform using complex computer algorithms. Personal loan amounts typically range from $1,000 to $40,000. Higher amounts might be available for small business loans and lines of credit.
Peer to peer lending can be the answer to all kinds of situations in which you need to get your hands on some cash. Maybe you want to reduce or consolidate debt, buy a car, start a small business, pay for a wedding or replace a washing machine that just died.
You can diversify where you put your money
Peer-to-peer lending isn’t just about lending to individual consumers looking for a loan – there are a growing number of different schemes and businesses you can lend money to.
Easy application
Put in a few pieces of personal information into an on-line application and you can be approved literally within minutes. Apply anywhere you have computer access and upon approval wait for you loan to fund.
Competitive interest rates
Investors will bid on your loan by providing the amount they wish to invest, and the interest rate they want to receive. At the end of the auction, the interest rate is averaged out across all successful bids. What’s more, this rate is fixed for the duration of your loan so you don’t have to worry about rising rates in the future and there are no early redemption costs.
Higher funding rates
Finally, the final benefit to the borrower in the peer-to-peer model is that funding amounts have risen over time, and now can be quite substantial ranging from $1,000 to $35,000. Obviously funding on the higher end of this spectrum can provide funding for a more meaningful project and or purchase.
Repayments
Interest rates are fixed for the duration of the loan, so you don’t have to worry about future rates rises. Even if you accept a higher than ideal rate with a P2P lender and in most cases, there are no penalties for early repayment.
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