In this connected world when it’s so easy to get a loan, it’s even easier to get tracked with a bad credit and face a loan rejection. If you are looking for Peer to Peer lending with Bad Credits, then read on- this is for you.
For a fact, peer to peer lending has got a different avatar in the digital age but the concept is not at all new. Traditionally, we have been taking loans from friends, family, and relatives in an informal way. But with the evolution of numerous platforms that connects borrowers and potential citizen investors, the concept has become far easier and turned out to be a good business model for generating a passive income for many and a way to get quick loans with bad credits.
Peer-to-peer lending networks generally incur minimized overheads as compared to the traditional lending. With the inception of digital technologies, it’s now convenient to succeed in peer to peer lending with bad credits with an increased chance of getting quotes from the wide range of lenders and finding the correct match of your credit.
In this Blog, I’ll show you our research how you can identify P2P network with low credit score requirements than traditional lenders.
First up, in case you are a newbie let us understand- what is Peer-to-Peer Lending?
Peer-to-Peer lending (P2P) is a practice of financing that facilitates an individual to borrow and lend money without using any official financial institutions as a channel in between them.P2P removes the work of an intermediate between them, but it also involves major time, effort and risk than the general financial regulatory bodies. Peer to Peer lending is also popularly known as “Social Lending” and “Crowd Lending”.
Authenticated borrows are listed on P2P platform, before lending them money. Investors have the option of lending a small amount to multiple borrows on contract bases to diversify their investment.
Peer to Peer Lending is a massive successful model for alternative financing around the globe. In India Peer to Peer Lending is gaining a quick pace and gradually becoming an investment opportunity for an investor. Reserve Bank of India has already taken an insight into this type of financial innovation and come up with certain regulations in this sector.
Is P2P Profitable?
According to the Financial regulatory sources “Yes”, but unfortunately the profitability rates or figures are very hard to come because all the P2P business or sites are privately owned, they don’t provide much of information about the financial situation unlike other companies
In Addition, to it, many P2P lending is still small, which they run on a contract basis and can be closed once it is done
Facing Bad credits score? But still looking for a loan?
Here is the solution for it but it is not from the traditional old Bank loans, banks have been restricted in providing loans to an individual who has a credit score below their eligibility criteria.
The solution, I analyzed after so much research on peer to peer lending.
There are some P2P sites which directly connects to “Investors”. Investors are more likely interested in high Return on Investment on the loan amount they provide, in this case, your credit score will hold back from getting your loan approved.
How does it work?
Borrowers have to fill out an application form in the lending site and their credit report is checked to determine an interest rate. Lately, investors verify your documents and help u in funding in less than one day.
Borrowers can make monthly payment directly from the site’s payment gateway.
Here are few Peer to Peer lending Sites?
These are some of top 7 Peer to Peer lending sites where they provide loans for those who are looking for funds with Bad credits for their business or any other financial needs.
Advantages & Disadvantages of Peer to Peer lending:
- Access to High ROI
- Risk diversification
- Personal choice of funding
- Generates Passive income
- Personal saving allowance
- Access to Funds at short notice
- Most of the P2P lenders are regulated by Financial conduct authority
- Risk of Money
- Interest is not tax-free
- Time constraints
- Lack of trust factor
Now that readers, you’re pretty clear about the process to get peer to peer lending with bad credits and the top sites for peer to peer lending. You must also understand the benefits of starting a peer-to-peer loan business and generate passive income.
Stay tuned for the next article on how to start a peer to peer lending business. Please share your comments below if you think that I’ve missed on something important.