Peer-To-Peer Lending (P2P) Global Trends And Growth!

Peer-to-peer (P2P) lending has become an excellent method of debt financing. This has allowed borrowers and lenders to borrow or lend money, eliminating intermediary financial institutions. By effectively bridging the gap of insufficient formal credit, it provides a platform for investors to provide adequate funds to borrowers without the intervention of the traditional banking system. 

In other words, this type of loan provides a market for easy availability and affordability of unsecured credit for many uses such as education, supplies, medicines, and more. You can also learn to invest from Home, Create passive income & Invest In Club.

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In addition, this process includes a faster loan approval process in less time and less effort than a typical loan scenario. Fortunately, the general response to the platform has been very encouraging.

Why Consider a Mutual Loan?

In recent years, a number of well-known lenders for this type of debt financing have emerged around the world. These lenders have removed the need for intermediaries from traditional credit and lending processes. Apart from being a very seamless lending platform, there are many other benefits to being such a borrower or investor. They include:

• Borrowing is easier and cheaper

• Investing is very profitable and easy

• High return on your total investment

• Fast and trouble-free online loan process

• Risk Return

• Take advantage of loans from small to large amounts, depending on your needs and availability

Introduction To Peer To Peer Lending

Peer to peer lending or P2P financing is defined by Wikipedia as – the practice of lending money to unknown people or peers without going via a classic fiscal intermediary such as a bank or other conventional financial institution.

As the definition indicates, it's an alternate kind of financing in which folks contribute to individuals. This practice has been happening since time immemorial, however, the expression has gained popularity because of the entrance of several platforms that facilitate such financing between individuals, for example, Swaper.

If you do not know about Swaper, it is a leading P2P lending provider which can be a solution to your problems. You may visit this link – to read reviews on Swaper.

what is peer to peer lending

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A P2P lending trade would entail a willing lender along with a ready loan seeker (debtor) who agrees on particular conditions including Interest rate, length, etc. A loan seeker might have many motives to avail a P2P loan as opposed to a conventional loan. These include:

  • Flexibility in determining prices, durations, small loan amounts
  • Lack of rigorous norms and paperwork
  • Transparency
  • Quick execution in the event of emergency requirements

A creditor would mostly consider P2P financing for two fundamental motives:

  • Option investment
  • Philanthropical

For a creditor, P2P lending is a quasi-fixed investment instrument in the sense that it supplies a predetermined rate of return (a creditor negotiates with the loan seeker), but one which is considerably higher than a fixed deposit but he/she takes up a danger that's greater than a Bank FD or a post bail bond.