6 reasons you should invest in P2P Lending
- HIGH RETURNS:
If you’re having to keep your money idle for a long period of time to get minimal returns, you are certainly losing it. Peer-to-Peer Lending provides an opportunity to earn big in lesser time. This isn’t attractive in the context of just savings accounts, this is greater than many other options(like mutual funds & stocks). These are also much safer than all market-linked investments as they eliminate the volatility factor.
The above graph shows the yearly returns (in percentage ) Peer-to-Peer lending, Mutual Funds and Fixed Deposits.
2. FAST RESPONSE:
It is a type of banking without banks or a non-banking financial activity. Anyone can borrow and lend almost instantaneously without unnecessary friction from banks and government regulations.
3. STRONG BACKGROUND AND SAFETY:
High returns typically mean high risk. A borrower starts with an anonymous person in need of money who files an application in the platform for a loan. Naturally then, strong background and safety checks are necessary. The platform does detailed credit evaluation of borrowers and lists borrower profiles only if they meet credit criteria.
The risk category is the measure of a borrower’s credibility which are mapped by checking the borrower’s loan history, previous repayment failures (if any), debt to income ratio, education and employment details, social status, etc. This is unlike traditional platforms which judge the eligibility based on just a person’s monthly salary. The eligibility criteria of the borrower are checked prior to lending the money which in turn reduces the risk factor.The idea being that you should know the borrower’s ability to pay and intent to pay.
Once you have access to all the data, you choose the borrower of your choice, checking their details, their credit scores, and after making the decision, you lend your money to the select borrower(s), on the basis of their eligibility criteria.
4. REGULAR RETURNS:
When you become an investor, you play the role of a lender. Hence, you charge interest. This earning can be withdrawn from the platform and becomes your monthly earning. Thus Loans attract monthly returns. This is unlike many other investments — wherein your money is invested for as long as you decide to not exit. When you Invest in P2P Lending, you can even reinvest this amount back into more loans and further increase your returns.
5. IT’S EVERGREEN:
Unarguably, there is never going to be a time that people stop taking loans. Unlike other asset classes — such as equity and mutual funds, Peer to Peer Lending is far less volatile and doesn’t involve you having to keep tabs on your portfolio every hour. With its high returns and safety, you could always earn solid profits at a consistent rate.
6. A WIN-WIN FOR LENDERS AND BORROWERS:
Through this system, lenders get profitable interest rates, and borrowers can borrow loans faster, all thanks to the speed and quest to offer a better alternative than traditional banking system.
Conclusively, P2P lending suits every investment requirement. It can be performed anytime, anywhere. Moreover P2P lending is a sort of good help for the needy.
It’s a smarter choice for the investors. Peer-to-peer lending is ultimately about giving the consumer more power to get a better deal.
You can start investing now through Z2P at 4% monthly (4% yearly) return rates. CLICK HERE to download the Z2P mobile app.