In this digital era where everything from buying clothes to the grocery is online. Why not consider lending online too? When it comes to lending money, most people rely on traditional ways, although all other things are gone digital. Peer to peer lending is a new way of lending, which makes the process of lending and borrowing straightforward. P2p lending platforms operate online and play the role of intermediaries to match lenders with potential borrowers. No one wants to fill a number of forms and provide a whole lot of documents for taking out a loan. Even after all this, it is not sure that the bank will approve your loan application or not.
P2p lending platforms make the process easy and save borrowers from the hassle of lengthy paperwork. Let’s look at the reasons which make lending from p2p platforms better than traditional lending methods.
Fast And Convenient
In p2p lending, all the processes from making an account to getting funds to take place online. You do not need to go to a bank or lender’s office to take out a loan. Generally, peer-to-peer platforms ask you to digitally send the documents, including your bank statement, salary slip, and other necessary documents. You only need to fill an online application form and provide the required information, and there is no additional paperwork like in bank loans. It also takes less time in loan approval. Usually, your loan application is approved within 72 hours. Once your loan application is approved, you will get quick access to funds.
Low-Interest Rates
When you take out personal loans from banks, you need to pay high-interest rates because these are unsecured loans. P2p platforms offer lower interest rates compared to conventional loans. You can take out loans for a number of reasons, such as for paying utility bills, car repair, paying medical bills or home renovation. P2p platforms offer secured and unsecured loans with a competitive interest rate. It means that you can repay the loan without putting pressure on your pocket. You do not need to sacrifice your lifestyle to pay the interest rate.
Easy Eligibility Criteria
Banks have strict eligibility criteria that you need to fulfil to take out a loan. Therefore, people who want to start a new business, work on a low salary or have bad credit scores find it challenging to get a loan from banks. On the other hand, p2p lending platforms have easy eligibility criteria and offer loans to individuals with low credit scores. Thus, p2p lending can be a great alternative to traditional borrowing from banks or other financial institutions. Moreover, p2p platforms carry our soft credit checks, which do not affect your credit file.
No Hidden Charges
If you ever take out a loan from a bank, you know that you have to pay different fees and charges once the process starts. There are several fees that you are not aware of in the starting. However, it is not the case in online lending. P2p platforms clearly display all the fees and charges you need to pay. These online platforms earn money by charging fees from the borrowers and lenders. There are no hidden charges, and when you register at a p2p platform as a borrower, the platform states the registration fee and commission on the loan.
No Early Repayment Fees
Sometimes it happens that you get money or profit from your investments and think of repaying your personal loan early. When you take out a loan from a bank, you need to pay early repayment charges or a hefty fine because you are returning their money before the loan’s maturity date. In contrast, you can quickly get rid of your loan before the loan terms end by taking a loan from online peer-to-peer platforms. Most platforms do not charge any early repayment fee or only charge a nominal fee that is easy to pay.
Peer to peer lending platforms offers many benefits to the borrowers. So why would not a person opt for online lending instead of traditional bank loans? It is a fast, easy and affordable way to get loans and fulfill your emergency financial needs. So what are you waiting for? It is a time to opt for digital lending and make your life easy.
