Peer to peer lending has seen immense growth in the recent years and this paved way for a new investment opportunity for investors and an option for borrows to seek money at a lower interest rate. P2P lending platforms help lending money to businesses or individuals by connecting both borrowers and lenders online.
For example, you might have the necessity of a personal loan. You then get the entire documents ready, visit the bank and apply for the loan. The loan gets rejected due to some reason and this sadly is the situation of many who wish to get a personal loan. Such people need to know that banks are not the only places where they can get a loan from. They can now choose the option of peer to peer borrowing.
LenDenClub is one such P2P lending and borrowing platform that offers the services at lower interest rates to the borrowers.
To borrow from P2P companies, one has to fill out an application online. The company then conducts a soft inquiry on the credit report of the borrower. Once the application gets approved, the rate of interest is chosen and this depends on the loan amount, the tenure of the loan and credit score and usage.
Easy Application Process: The process to apply for a loan on LenDenClub is easy. All one needs to do is to fill up the application online and the approval can be obtained just within minutes. Most of the borrowers have their loans funded irrespective of their credit history or score.
Low Interest Rates: This can be termed as the biggest benefit borrowers can expect with P2P lending. The interest rates offered by LenDenClub are much better than those offered by banks. Quick Funding :The loans are funded real quickly but it also depends on the amount of loan that was requested by the borrower. Small loan amounts are funded within a week.
Peer to Peer lending platforms have good benefits for lenders too. Lenders can expect high rates of interest when compared to the savings bank accounts. Lenders can also state their conditions to borrowers before funding the loans.
Peer to peer lending platforms are beneficial for both lenders and borrowers and have been successful in providing the bail-out funds for many.