In the modern-day lending scene, there are numerous ways to borrow money. The old, rigid methods of borrowing turned into flexible solutions which helped thousands of people around the world.
Among these modern solutions are P2P lending sites. For starters, P2P lending means peer-to-peer lending – the act of offering loans directly to people. Think of P2P loan sites as communities where everyone can become a lender and borrower. A P2P site is self-monitored and it’s not governed by any central authority. Members have control over their transactions and rates.
Do you want to know the reasons why you should borrow from P2P lending sites? These are some examples:
Smaller Interest Rates
Unlike metrobankdirect and bpi credit cards, P2P lending boast smaller interest rates and fees. Since there’s no central authority to dictate the rate scales, you’ll have greater financial freedom with a P2P community. The interest rates will remain variable over the years. Whenever there are changes, the site admins will make clear announcements right away. Most of the time, the profits from the interest rates will go towards the development of the community and to attract more potential investors. After all, without investors, a P2P lending site can never function.
Better Community Feedback
With hundreds of lenders competing in the marketplace today, it can be tricky to find the right one. It seems that most lenders have the same promises – smaller rates, faster transactions, and fair repayment terms. To avoid getting overwhelmed, why don’t you switch to a small P2P community instead? In a P2P loan site, you won’t have any problems with information. Since the community is tight-knit, you can gather reviews and feedback instantly. If a member has a negative borrowing or lending feedback, then the best course is to stay away from him. Go for member-lenders with high rate of positive feedback.
You Can Be a Lender Too
The term ‘peer to peer’ is all about connection, communication, and quick negotiation between people. No intermediaries can influence the transaction. Aside from borrowing, the greatest advantage that a P2P site can offer is the capability of being a lender. As a lender, you’re also an investor. This is a great way to make money on the side – just like having a financial nest egg. Even though profits may be low at first, your growing reputation can help you earn more from interest someday.
P2P lending sites are modern loan markets that you can rely on. But just like everything else, P2P lending has its fair share of risks. Before joining one, make sure that you’ve researched everything about your target P2P site. Check out the reviews of other members and carefully read the terms and agreement. Once everything is validated according to your preferences, start joining the site immediately!