P2P Lending
P2p Lending: A Cost Effective Solution If The Banks Turn You Down For Loans
–Are you someone who’s urgently in need of loan?
–Are the banks turning you down because you don’t seem to meet their guidelines in terms of borrowing loans?
–Are in you in search of a cost effective solution that will put an end to this woe?
Then your search ends here! Welcome to the world of P2P lending–A system where you can meet lenders who are there to help you at lowest of interest rates.
What Is P2P Lending?
P2P lending stands for Peer to peer or person to person lending. It is an online platform where borrowers and lenders meet and negotiate their transactions. This practice is quite popular in parts of Europe, United States, China, Australia etc. Although this is a fledgling practice in India, gradually a few platforms are gaining pace.
How Does It Work?
The web portals which are providing these platforms charge a nominal upfront fee from both the parties (lenders and borrowers). They get the necessary documents and occupation of the borrower checked by a third party. The interest rates are set as per the norms of either the lender who bids for the lowest rate or by the intermediary platform based on the borrower’s credit verification. The borrowers may also have the option to choose their lenders who are at the same time authenticated by the intermediary platform.
Benefits of P2P Lending
1. Hassle-free: You don’t have to move from banks to banks to get your loans. Worse still, if you don’t meet certain pre-requisites of the bank you may end up not getting the loan at all. As P2P lending is an online process you don’t have to worry about the stringent guidelines of the traditional banks.
2. Choice of lenders: Probably the most important benefit of P2P lending is the borrower gets a bevy of choices as far as selecting their lenders are concerned. You don’t have to scratch your head sitting in banks and following their regulations which may or may not favour your circumstances.
3. Economical solution: This goes without saying that the regular banks or lenders will charge you a lump sum claiming they are different types of fees like application fee, processing fee etc. As mentioned above, in P2P solution you’re just charged with a nominal one-time fee for assessing the overall transaction process.
4. Reasonable interest rates: The borrower gets a fair chance of selecting the interest rate offered by the P2P portals. If their credit background and payback timeline meets all the requirements then getting competitive interest rates becomes easier.
5. Time saving: If you need the money on an urgent basis then probably banks are not the place to ‘bank’ upon. In B2B forums your story is heard and you’ll get the money real quick, as opposed to the traditional banks which takes much longer.
6. Apply whenever, wherever: As it’s an online platform you can apply for the loan whenever and wherever you want. Even if you don’t have access to a bank, simply an internet connection will do the needful.
So if you think P2P lending may lend a helping hand to you, then get-set and apply!
