Due to availability of fast internet services, we tend to use online banking services through computer or mobile instead of visiting high street bank branches. It means that internet and technology has shaken up the traditional way of banking. However, this is just a beginning. The emerging ways of investment i.e. Peer to Peer lending is going to create serious challenge against banks. A huge sum of profit, made by banks, comes through the money you put in your saving accounts. You give a certain amount of money to the bank and in-return, they promise you an interest rate. They take your money and lend it to someone else with a higher return rate. You may get an assured return at the end of 3 months, 6 months or a year. But the big chunk of income is retained by the banks before they pass on returns to you.
However, the situation may not remain same for longer. Peer 2 Peer lending platform directly connects the lender and the borrower. Although it is a bit riskier than fixed deposit, it offers higher returns. While a bank in India will yield around 7-8% interest rate per year, with peer to peer lending you can earn an average return of 25% percent. You don’t need a huge amount to start peer to peer investments. You can start with as little as Rs. 5,000. Every day, more and more people are investing their money through Peer to Peer Lending platform due to 3 attractions of Peer to Peer Lending.
Yes, higher returns is investor’s desire and it is fulfilled at peer to peer lending platform.
If investment is a coin, returns and risks are its two sides. Every investment is fraught with risks. P2P lending platform LenDenClub is equipped with excellent analytics and knowledgeable workforce to create a risk profile of every borrower so that investor is fully aware of associated risk. The information helps investor make informed decision regarding the investment and help overcome risks with return on every investment made from their hard saved money.
Peer to Peer Lending through an online platform has been a great success in markets of USA, China and UK. What sets apart Peer to Peer lending on internet platform from conventional money lending is the former’s ability to reach out to large number of people. The increasing internet literacy and internet penetration assures ever increasing customer base. The larger the number of user the greater is the connection between borrowers and lenders through P2P lending platforms. Borrowers will have much needed access to capital. Lenders can lend to wide number of borrowers by creating a mix of high and low risk investments to earn desired rate of return and at the same time spreading the risks. It is imperative that you choose the best peer to peer lending companies because P2P lending is still in the process of getting regulated in India. You should do prior research of the p2p lending platform before going ahead with your investments. The borrower verification is done by the platform. In such a case, the platform should have enough capabilities to verify the borrowers. One should also check about additional safety net provided by the P2P lending platform. LenDenClub is one of the most trusted and safe p2p lending platform in India.
LenDenClub platform also follows very strong credit verification norms as compared to other Peer to peer lending companies in India and banks. To attain customer’s trust, every transaction conducted on LenDenClub is transparent. There are no hidden charges, commission or additional fees involved in the transaction. All the charges are clearly mentioned on the website. It’s a completely safe and secure platform to lend/invest your money. Since the whole investment process is online, it is hassle free. You don’t have to go in person to their office, nor do you have to provide a long list of credentials. Everything is done with ease and at click of your mouse.
In order to lend money through LenDenClub, the first step is to sign up and create your account at www.lendenclub.com. It is an extremely user friendly website. It also offers chat facility to help you in case there is any difficulty. Creating your LenDenClub account is as easy as creating a profile on social networking website. The next step is Lender confirmation. This step is managed by the platform. You will be notified through sms/email once your profile is approved. The last step is to choose borrower and lend money to him. That’s it. Now, enjoy good returns on your investment!