Five Reasons to Lend on a P2P Platform

P2P Lending - An Alternative Investment Option

These days getting a decent return on your hard-earned investment for a middle-class individual, requires careful homework, in terms of investment instruments( stock market or FDs or Mutual Funds ) or the good companies or funds to invest in.

One of the good options to invest your money, today, is on a Peer to Peer lending platform. There are five reasons you should lend on a Peer to Peer platform, that is registered with the RBI.

1.Quick Returns

There is no long waiting period for getting returns on your investment as in the case of a mutual fund or a stock market investment. You can start getting interest on your principal, from the next month of investment onwards.

2. Attractive Returns

While the banks FDs today will provide a return of upto 7 % on normal FDs, with an investment on a P2P lending platform that has pre-verified borrowers, the lender can make upwards of 10 % or more.

3. P2P is a regulated activity

On Oct 04 2017, RBI announced the P2P Directives that the P2P companies operating in the sector have to comply by. The P2P companies need to apply for a specialized NBFC license from the RBI, along with complying with a number of requirements in terms of capital requirement, leverage ratio, business continuity planning & confidentiality of customer data among other requirements.

Now, the loan defaulters have to be reported to the 4 credit bureaus, namely, CIBIL , EQUIFAX ,EXPERIAN , CRIF.

A loan default record would adversely affect the individuals in their future financia