P2P Lending – The Alternative New Age Lending
Peer-to-Peer (P2P) lending is a new age asset class that allows you to earn interest like a bank by directly lending to credit-worthy borrowers. It is one of the fastest-growing investment opportunities that can help you diversify your portfolio while earning higher and more stable returns.
Lender’s Perspective
The emergence of P2P lending has enabled many individuals to lend money directly to prospective borrowers in a hassle-free manner without the involvement of the banks and FIs. But just like any other investment, it has it’s risk. The main risk involved with peer to peer lending is the risk of default by the borrower. However, that risk can be greatly mitigated with certain practices.
In India, it is regulated by the Reserve Bank of India (RBI).
Borrower’s Perspective
Just like for lenders, peer to peer lending is an amazing alternative platform for borrowers to raise the needed capital. These new age platforms go beyond conventional forms of risk analysis and rely on big data analytics and advance credit assessment mechanism to ensure no borrowers can rejected unfairly.
Why should you invest in P2P Lending?
- Diversification of your Portfolio
- Pre-Verified Borrowers
- Additional Compounding Benefits
- Ease of Investment
- Considerably Higher Returns of Up to 12.00% p.a.