Peer to
peer lending is an extensive category that covers different investments. All
P2P lending situations are similar at a basic level. You can give your extra money on a
particular interest to needy people. It will help you to earn some profit.
Types of peer to peer lending may vary significantly; hence, it
is essential to understand the type of investment and its function. You can
spread money across many individuals and businesses. You can also choose specific
parties to lend your money.
Account-Based Benefits of Peer to Peer Lending
The good
reputation of account-based products makes it the first preference of lenders.
Some bigger platforms may genuinely claim that their investors can’t lose
money, in case of an investment failure. Considering
the reputation, good track record and credibility of P2P lending, the
investments may get a good return. You can get 4 to 7% interest on your money.
Select-select Benefits of Lending
Unlike a
traditional account-based loan, you can invest directly in your favorite
business. You can choose a potential business after comparing all available
options. If you are confident about the selection of a good investment with a
good return and less risk, you can earn a good amount of money.
High Returns
Peer to
peer lending offers a high return, such as you can get almost 20% interest.
These lending situations are short term and last only for 12 months. You can receive the initial loan amount quickly, unless the business faces failure.
Application Procedure is Simple
It is
really easy to apply for peer to peer lending. You have to fill out an online
application form and carefully provide your personal information. It will take
only a few minutes to get the approval of your loan. With the help of your
computer, you can apply anywhere to get extra funds for your business or
personal needs.
Interest Rates
Peer to
peer lending is beneficial for everyone as compared to traditional bank loans.
You can get this loan at a lower interest rate as compared to other types of
loans. You can get quotes of different lenders and compare their terms to get the
best rate. After loan approval, borrowers will get a timeline to repay this
loan. Lenders may get 3 to 5 years to repay this loan. The interest rate can be selected as per the repayment terms.
Funding Speed
The speed
of funding is another reason to choose peer to peer lending. Funding may take 1
– 3 weeks based on the size of the loan. A small loan can be less than $5,000 or
you can get this loan within a few days. Maximum funding may take more or less
than a week.
Great Funding Rates
The
borrowers of peer to peer lending can get the advantage of high funding amount.
This amount may increase with time and can be substantial ranging between
$1,000 and $35,000. You can get a higher amount for your business
expansion or buy new equipment for your office.
If you want
to earn extra money, peer to peer lending can be a good choice for you. Start
slowly and make wise decisions to increase your return.
