What is Peer to Peer Lending

1
What is Peer to Peer Lending?
Personal Loan in Delhi and other cities of the
country is a great way to answer the financial
needs arising adhoc. It is this reason why so
many avenues and sources are there which provide
loans to the customers. P2P is one such source
that is now common in all parts of the country.
It is important that we understand what a P2P
lending is and what are the advantages and
disadvantages involved with it. What is Peer to
Peer Lending? When money is borrowed without any
intermediary source, this is called P2P. In this
case, businesses, and individual operate without
any formal paperwork. This may sound risky as
most of the loans provided by the P2P source are
unsecured loans. This is done through an online
chain of work where a potential borrowers begins
by filling up a form stating the need for a loan.
After the application is received, it is checked
and interest rates is discussed upon. Post which
the application is approved and the applicant can
get the money after discussing the way the money
will be transferred. The credit history, in the
process, is checked and based on which the
interest rates are levied and Personal Loan in
Delhi and India disbursed. Advantages of P2P High
Return in Investment The investors usually get a
higher return as the interest rates although low,
but does not involve any other fee. The
investors are usually looking for small profits
through this loan lending way. Accessibility
With more accessibility to the online platform,
it is considered rather easy way of lending and
borrowing money from the investors. An Emergency
Loan Online can be attained through this
source. Lower rate of interest With a
competitive market, the investors charge a low
rate of interest. This makes it easy for the
borrower and relatively profitable for the lender
too. Disadvantages of P2P Insurance In case of
default by the borrower, there is no rule that a
government should intervene and insure the
lender's interest so Emergency Loan Online cannot
be provided. Risk With the maximum number of
borrowers applying for P2P they have a low credit
history. The lenders do not check this
stringently and often risk their money. Lenders
must check the defaulters and then extend the
loans. Jurisdiction Under some jurisdiction P2P
lending is not provided. This restricts the
borrowing and lending Personal Loan in Delhi and
some other cities too.