Information about Fintech technology

Peer to peer (P2P) lending functions as an online marketplace that brings lenders (people who have savings) in touch with borrowers seeking funds (in it’s form of personal loans). This Fintech technology is changing the process of credit markets. By completely bypassing the bank, it enables quicker the process of borrowing and lending. The investors receive better return on risk while borrowers receive rapid credit with low-interest rates. Because it’s an online platform where two parties interact, you may choose to become a loan lender or a borrower.

Individuals who want to borrow money register online. This P2P lending platform makes use of technologies and data to judge the creditworthiness and creditworthiness of an applicant. You will receive a risk category and the appropriate interest rate following your credit click here score. Credit-worthy borrowers get loan disbursed in minimum possible time. If you register as an investor/lender on the platform, your account will be set up through that lending platform. It is possible to invest in consumer loans from the amount of 15K. You have the power to choose which loan you want to invest. You can create your portfolio by choosing loans that fall into various risk classes.

When the borrower begins paying interest rates, you are able to receive the interest as EMIs (principal as well as interest). P2P lending gives you inflation-beating returns more than banks’ savings account or fixed deposit. It is possible to withdraw money or reinvest funds to reap compounding benefits.

What is the difference between P2P lending and other lending?

1. Online Application Process: Money Lending Online is a fast and simple way to obtain capital in the kind of loans for personal use. It’s completely different from the traditional loan process, which is a requirement for financial institutions and banks which requires you to apply manually by filling out lengthy applications as well as visit banks to look over the status of your loan. With P2P lending the entire loan application process is online. All you need to do is sign-up via the site to register as the borrower. After uploading all required documentation for your loan, it will get approved depending upon your credit history and eligibility.

2. Easier loan approval A credit union or bank will evaluate your loan application solely based on your credit history (CIBIL score). Online money lenders use additional information to evaluate your creditworthiness which includes your education and income per month, your credit-to-income ratio and any other financial parameters that are relevant to you.

3. No collateral requirements: P2P lending allows for personal, non-collateralized loans. You don’t need to guarantee collateral, or even make a deposit to get the loan approved. If, for instance, you fail to repay the loan in a timely manner, it is likely that you will be under legal responsibility, however, there is no chance that you’ll lose your house.

4. Better rates: Lenders charge the lowest interest rate compared to institution-based lenders, such as banks. In the case of P2P platform for lending, you’ll get lower rates and low service charges (if there are any). P2P lending companies do not have to carry the same overhead like banks, and therefore don’t have the same regulations expenses. In the end, you pay no interest rates on personal loans.

Looking to apply online?

Peer-to-Peer lending is in direct contact between banks and lenders, eliminating the need for intermediaries. Prior to applying for personal loans with P2P lending marketplaces make sure to conduct extensive research on the internet. Select a reputable and accredited platform. If you’re thinking of applying for a loan, ensure that you carry thorough due diligence on every risk-related category in order to reap greater returns.

Faircent is India’s most popular online marketplace for virtual transactions between borrowers and investors. By joining the network made up of Online Money Lenders in India you will reap the benefits of an intelligent way to make more money on your online Investment. Small business owners and the like can get personal finance on flexible terms as well as low fixed rates.

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