Why should you apply for loans from Peer-to-Peer Lending and not from banks?
Are you facing issues while getting loans from traditional banks? Here are some tips which will help you to apply for loan online via peer to peer lending.
Looking to borrow some money? Heading to the bank or using a credit card, even asking a friend or relative would be your usual modus operandi. However, there is another option in today’s fast-paced digital world i.e peer-to-peer lending! It is a great option for those looking to borrow money online. With the world becoming digital and more people hopping onto the social networking wagons as well as the growing number of online lending platforms has facilitated peer-to-peer borrowing in our country. People can now borrow money online at a peer-to-peer lending company where in the investors are looking for a place to park their funds for a higher interest rate. They can then lend money online to borrowers looking for loans that are so small that banks tend to avoid them. Thus this makes life easier for all those looking for loans without the hassles of dealing with banks. There are a number of benefits of peer-to-peer lending as mentioned below:
Faster Approval Time
With Peer-to-peer lending, the approval time is shortened considerably. Whilst banks would normally take a long time to assess your credibility and paperwork, loans on lending sites enables borrowers receive the funds within 18 hours. Sometimes the loans are approved within minutes as well. Within 18 hours of loan registration a borrower can have the funds.
Easy Verification process
Whilst banks have an intense verification process be it personal discussions, to loads of paperwork, with P2P lending, borrowers credentials are verified through various online and offline sources. This makes the borrowing experience pretty much hassle free. It also eliminates any office/home visits making it a very flexible process.
In spite of being an online platform, there are some lending platforms, which give privacy of the client a status of utmost importance. Therefore getting a loan here is fast as well as safe with your private information remaining protected and your data remaining secure.
With Peer-to-peer lending companies in India, there are a large number of approved lenders who make sure the loan will get funding. These sites guarantee funding of your short-term loans. There is no risk of loss as a part of the registration fees is returned in case the loan is not funded for some reason. This is unlike the banks in which if your credibility does not match the bank’s standards you still lose the application fees as well as the time invested.
Credit Score determines your rate of interest
Every individual borrower’s interest rate is set on the basis of an internal credit rating process after the analysis of different parameters. A peer-to-peer lending company will give your profile a score and a higher score will garner you a lower interest rate. This is much better than the banks in which your credit history is the main parameter.
Thus with nominal registration fees and without the hassles of any physical meeting with a lender, a person looking to borrow funds can have access to them in a matter of a few mouse clicks with peer-to-peer lending.