Peer-To-Peer Lending – A Beginner’s Guide

by Betty Bite

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Peer to peer lending is a certain type of financial transaction that takes place between people without the involvement of a bank or any other traditional financial institution. 

Peer to peer lending is becoming increasingly popular all over the world with both borrowers and bankers reaping its rewards. It is often seen as a hassle-free and cost-effective alternative to using a bank and that is why it is becoming increasingly desirable. 

If you haven’t tried peer to peer lending then why not give it a go? Here are some of the things you can benefit from, whether you are an investor or a lender…

1) Investors can diversify their money:

On most peer to peer websites, investors have the opportunity to spread their money across a wide range of investments, instead of putting it all in one place. In fact, if you wish you can place as little as twenty-five dollars on an investment on most websites.

This is good because it diminishes the risk factor associated with investing money and allows you to dip your hand in various exciting prospects. If you don’t have that money to spare at the moment, this probably isn’t right for you. Look into DTSS Complete Freedom first, and then consider investments.

2) Low interest rates:

Borrowers can profit from low interest rates. You may not expect it but most of these websites offer a good interest rate and with lots of websites to choose from you can benefit from shopping around for the best deal. A lot of websites offer a facility whereby you can use a rate calculator to decipher what rate would be available to you before you even sign up.

3) Varying timelines of paying the money back:

Borrows can also benefit from the different timelines they are offered to pay the money back. This usually varies from anything between one and five years. This is good because it assures the lender of their flexibility in paying back the money.

4) Excess information available

Investors know exactly what they are buying into via the floods of information regarding the borrower that is available to them. They can check the borrower’s credit history and rating. As well as read the borrower’s description of their loan requirements. Some websites provide excess information to this as well, such as previous loan transactions and alike. 

5) Easy to apply

This benefit applies to both parties. Borrowers and investors alike can profit from an easy process of application; all they need to do is sign up. In the case of the borrower, once they have signed up to their chosen website they merely have to write a description of their monetary requirements and why they need money.

When it comes to the investor they merely start building their portfolio and seeking potential investments that suit them. All in all online applications are substantially faster than using via the traditional method of a bank. 

6) Speed in which funds are available

The speed in which funds become available to the banker also possesses a great advantage. They can benefit almost immediately.

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