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Increased risk brings the possibility of increased rewards. Many modern investment vehicles follow this approach to maximise investors’ returns. Cryptocurrencies are one of them, although they are unregulated in the country. Peer-to-peer lending (P2P Loan) is another modern investment vehicle gaining popularity. Unlike cryptocurrencies, it is legal and has the potential to give decent returns. This article will tell you everything you need to know about p2p loan.
Peer-to-peer lending websites function like marketplaces. They connect people who wish to lend money with people who need money. It is a means for borrowers to receive money without having to go to traditional lenders, such as banks.
On many websites, the money that you deposit for peer-to-peer investing is automatically distributed among multiple borrowers. However, on other peer-to-peer lending platforms, you have the option of choosing who you want to lend your money to. (P2P Loan) Peer-to-peer loan interest rates are often greater than those offered by regular savings accounts.
Peer-to-peer lending has a simple mechanism. All the operations are completed on a mobile application or website. The following steps outline the general process:
Borrowers and lenders benefit from p2p lending in the following ways:
With P2P lending, however, there is always the risk that the borrower would be unable to repay the debt.
Peer-to-peer lending does, however, have a few drawbacks, such as:
P2P loans are like instant personal loans but without much authorisation. It is best to get a loan from a conventional bank if you need money. IDFC FIRST Bank gives instant personal loans with the major benefits of a P2P loan, but with added security. You can also check you EMI amount with IDFC FIRST Bank’s personal loan EMI calculator. Simply enter your loan amount requirement, period for which you want. The fact that you can get personal loans online proves that bank loans are on equal footing with P2P loans.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.