Loans of lending money has been a practice since ages when landowners used to lend money via the book-keeper in an old fashioned way. Loan practice has evolved with time along with the up gradation of technology. Visualise that you have applied for a loan just by few clicks via submitting a piece of information online; within few hours you get an approval of the same. This has really turned up into reality by a number of online marketplace; which offers an online platform for borrowers and lenders to meet directly. This kind of lending is popularly known as Peer to Peer lending.
Peer-to-peer lending is getting famous within the borrowers due to its low interest charges, easy application procedure and speedy lending choices of the lenders. The peer-to-peer business prototype is unambiguously different from bank’s lending procedures. Peer-to-peer platforms do not lend their own funds instead they only act as a platform to match the borrowers with the lenders. Some financial institutions have started making strategic decisions about P2P lending. Banks and institutional investors are buying chunks of P2P loans for adding to their portfolio. In turn, some of the P2P platforms also are making alliances with the traditional banks to:
- Fund the loans
- Provide referrals of customers
- Partnering to build credit products
Peer to Peer lending in India is acting as a biggest differentiator in the terms of it being on the online interface and the customer experience that the platform provides. Most of the P2P platforms provide features such as chat support for the customers and portfolio management tool for the investors that makes it pretty much useful and easier.
One can think of going for a personal loan rather than Peer-to-Peer lending, but personal loan’ process is bit tricky and complicated. Personal loans are generally of two types i.e. secured personal loan which is protected in contradiction of the mortgage of retreats, high submission value insurance policies, gold etc. and another type is unsecured personal loan which does not necessitate you to mortgage no matter what the article you possess.
Unsecured personal loans do not require you to provide any collateral security, though some PSU banks may insist on a third party guarantee.
In a Peer-to-peer monetary eco-system, borrowers are certified in a reasonable and balanced way irrespective of their bases of income (salaried, self-starting and skilled) giving them a greater chance of selection and in reality receiving a loan. A peer-to-peer lending structure is also inexpensive for borrowers as they do not have to pay any of the bank custodies, processing fees and the interest rate is centred on their real financial ability based on a all-inclusive credit assessment. In this developing global marketplace getting in touch with prospective investors and borrowers is thought-provoking and this is where i2iFunding comes into drama. I2iFunding is an online marketplace where potential Investors and pre-verified, credit earnest borrowers unite and trail bilateral trades. I2iFunding helps foray pacts amongst the Investors and the borrowers and also support in repayment.