How P2P lending works from both borrower and lender perspective?
Sub Heading - The Borrower Perspective
raise a loan request with the required amount
Once your loan request is approved, it’ll be made live on the platform
No personal details (or documents) are broadcast to all lenders. Instead, lenders see only the information useful in making a judgement on their investments (like interest rate, repayment tenure, past payment history)
Funding is quicker as there are multiple lenders available to fund the loan
The loan amount gets credited directly to your bank account
EMI payments can be made through auto debit of your bank account
Sub Heading - The Lender Perspective
The lender has the ability to choose the risk profile of the borrower
P2P platform provides all the required details like salary, debt service ratio, past repayment records
Lender can lend an amount as low as Rs 1000.
In a platform like Monexo, there is a clear demarcation of lender funds through an escrow account
In case of delayed payments by the borrower, safeguards are provided by the P2P platform
The average returns earned by the investors is in upwards of 15%.
Read More: https://www.monexo.co/in/blog/p2p-lending-101-the-ultimate-beginners-guide/