Understanding Peer to Peer Loan Platforms

December 10, 2019
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Polly Dom
Posted in Business
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Getting loans for short-term purposes has become easy and quick through Peer to Peer (P2P) loan platforms. Many P2P platforms help in providing business loans, consumer loans, personal loans, etc. The process of applying for the loan is all digital, i.e., everything is online or done through applications.

What Do You Mean By P2P Loans?

P2P loan lending is a very simple process through which any individual or company can apply for loans online. Unlike banks and other financial institutions, a lender can be a financial institution or even an individual. These lenders offer loans with a certain percentage of interest to the borrowers. The platform is also not very rigid as banks, and hence, getting loans becomes faster and easier than applying in the banks. The tenure of the loans offered to the borrowers depends on the amount borrowed from the lender. These platforms are regulated by RBI guidelines specially drafted for them.

What Is The Process Of Lending And Borrowing?

As a borrower, you can register on a P2P platform by filling out a form and submitting it to relevant documents and a registration fee. Some lending platforms would like to know more about their borrowers and hence would request access to your social media account. However, this is optional, and a borrower may decline to provide access to their accounts. The team of the platform will check the level of risk and then approve. Once you have got approval, you can start applying for loans.

As a lender, you, too, need to register on the platform by simply uploading the relevant documents and registering. Unlike the borrowers, lenders do not have to fill in any forms. Once the verification of the profile details has been done, then you can start lending.

Points To Be Kept In Mind While Choosing P2P Platforms

Since these platforms are online, there are always some risks involved. To ensure that you are dealing with any fraud activity, always do your research before choosing the platform. Grupeer is one such P2P lending platform that can be trusted and offers all types of loans. As lenders, you can check the ratio of defaulters in the platform to ensure that you are not losing out on the money that you have lent. As a borrower, you can check out the review of the platform. You can also check Grupeer review from online reviewing websites that provide a summary of some of the leading P2P lending platforms. Hence, helping the people to make it for them to trust a platform.