Do you remember when you required money for home renovation or your car maintenance, but you couldn’t get the loan from anywhere? You might have become a bit restrictive when it comes to managing cash. Also, you may have been feeling that borrowing money from your loved ones might not appear appropriate.
There is another way to resolve your issues. Peer to Peer lending works on the latest platform for lending the cash you require by preventing borrowing money from the banking institutes. Instead, investors gather their money to offer you the loan with interest of as little as £25.
Here are ten famous facts about the platform:
1. Interest Rates are Commonly Lesser Than Any Banks.
According to your credit, the loan amount and period you can apply for are better than plenty of banks. In addition to that, the interest rate is even much lesser. That is specifically true when you contrast P2P loans with credit cards or various types of business loans. Of course, they are always not given at a lower amount, but it is advisable to try them.
2. No Personal Meetings.
Many people avoid meetings with bankers when they have to apply for loans. The loan application process is similar to waiting for the exam result you gave at your college, reminding you of when you were busy doing your studies. Instead, Peer to Peer lending is all about filling out the necessary forms on the website, and facilitators will not bother you with anything else.
3. They Provide You with an Opportunity.
Even if your credit statement shows you are in debt, these websites will offer you a loan. That is opposite to banks because they are tremendously restrictive in such scenarios. They will charge you a high interest rate. P2P lending can be a better option than not obtaining the loan.
4. The Amount Lent on Cash Has a Broader Range.
For example, the Peer to Peer lending UK can easily lend you an amount between £1000 and £50000. That can be helpful if there are essential property repairs that need to be carried out.
5. No Insurance Cover on Your Investment.
In contrast to conventional banks, the money you invest is not insured to provide security against the defaulters. As a result, the more risk you take, the greater your returns from the interest rate. That can be as high as 10 percent ROI on your investment.
6. Speedy Processing.
The whole procedure from launching the application for the loan to money receiving can take as long as 2 to 3 days. Banks can take plenty of time before processing the loans and providing them to the client. That will only be possible if the bank approves your loans.
7. There are Almost No Charges.
The Peer to Peer lending UK offers loans that are provided with nearly no costs. The fee is commonly between one to five percent. The charging of this fee takes place from the loan investment. Whereas when you take a loan from the bank, they will accept payments from you, which will become more costly than taking loans from the P2P lending platform.
8. Several Loan Options.
Peer to Peer Investmentprovides several types of lending options. For example, there are loans in the personal, business, and student categories. Also, borrowers can take auto and bad debt loans. So, you can carry out your research to take the type of loan you have been looking for.
9. Continuously Working on Improvements.
The Peer to Peer Lending UK is continuously working to improve its lender’s experience. The platforms utilize top-end technologies to assist the investors in finding the right investment opportunities.
10. Require Lower Investment Amounts.
You can start by lending a loan with an amount as little as £100. There are not many ways of investing this much amount of money in the market. So, peer-to-peer lending offers you a way to begin investments with very little money.
The Final Thoughts
Peer to Peer lending might not be an investment technique for everyone, but it is a lending strategy for those who like to borrow and invest. Individuals have been borrowing money from these websites for multiple requirements, including debt consolidation to home renovation and working on a new business. Unfortunately, the majority of banks would not even consider providing these types of loans.