Have you got a sudden influx of money in your account? Have you recently sold a property or a car? If you think that by idling your money in your savings account is a better way to make it growth, it is not. With nominal interest rates, it would take several decades to see your money grow. The best way to make it grow is to nivesh it for future by lending it to others at attractive interest rates. Yes, other than commercial banks and NBFCs, people can also become lenders with a P2P lending platform. There are several P2P lending platforms that allow both borrowers and lenders to connect with each other and seek to benefit.
Peer To Peer Lending is a relatively new concept in India and can be defined as a network of borrowers and lenders. In this system, one person can lend money to the needy people looking for funds. Borrowers can choose from a wide range of lenders and choose the best deal provided by different lenders. This platform just acts as an intermediary between the money borrowers and lenders by letting them connect with each other.
At the initial stage, the first step is to create an investor’s profile on the portal and transfer funds that can be offered for lending among borrowers. A need person creates a profile by providing his credit profile and other documents. Basis this, he is given an interest rate on which he can borrow the money. The lenders can choose from a wide range of investment offers and finalize the one that matches a feasible risk-benefit ratio. After the transfer of funds is done to the borrower, interest rewards start coming to the lender whenever borrowers repay the repayment amount as per the loan schedule. The disbursement of funds to the borrowers and the collection of payments from the lenders are all managed by the P2P lending platform.
The need of money among people is everlasting and it gives people with funds an opportunity to lend the same at higher interest rates and get desired returns. The conventional approach for the borrower is to contact a bank or any other money lending organization and apply for funds. In most cases, these lenders do a thorough profile check of the borrower like identity, employment and address verification before doing anything else and if everything goes well, the amount is disbursed. There are several downsides of this process. First, the process is cumbersome despite the incursion of digital lending platforms. Second, if a person has bad credit history, it is difficult or sometimes impossible to get funds this way.
All these issues are eliminated in a P2P lending concept. First, the lending portal looks after the verification and credit checks of the borrower. As a lender, you can browse through various borrowing applications and choose the one that can provide best returns in the form of repayment amount. So, this is a hassle free way to invest your money and get amazing returns. From a borrower’s perspective, it is easier to secure a loan without facing complex mechanism set by banks and NBFCs.
The easiest and fastest way to invest your money in a peer-to-peer lending platform is to register yourself with a P2P lending portal and browse through various borrowing applications available there. Once you become a peer-to-peer lender on the portal, you can enjoy an opportunity pick from borrowers given various aspects like their credit history, score and rate of interest. It is entirely up to you whether you want to get high possible returns or you are okay with lower returns but in a safer avenue. Due to the presence of various P2P lending portals featured by public organizations, it is possible for people to invest in them via the public stock market or by taking part in early-level funding circles on various business investment portals.
In the case of money investors, peer-to-peer lending is largely considered a way to expand their portfolios and leverage the power of alternative investments that come with amazing returns. Investing in P2P borrowing mechanism is becoming progressively prevalent among people who are well aware of how to determine risks and get higher returns out of their investments. By picking right investment platform like Investkraft’s Nivesh, peer-to-peer lending is sure to provide an unmatched addition to various investors' portfolios.