Nowadays the business market can be leading to lenders and borrowers. The peer to peer lending can be abbreviated into P2P lending practice through online business service. The company offers to run the business overhead to provide the cheapest financial service.
How they process to get a loan from the borrowers:
- Day1 can be registered to pay the platform fee can access the documents uploads as per verification requirement.
- Day2 incomplete the document completed.
- Day3 verification can do by the agency to credit some assessment report to get approval IMM (International Monetary Market).
- Day4 guarantee the agreement throughout the system including EMI.
- Day5 to sign the agreement to send to lenders.
The method of financing to get borrow and lend money without the use of an official institution. It can be taken more time to get involved in leading scenarios.
Small business to breaking down P2P: A small business can apply for the loan through the bank for the extensive financial checks can qualify the credit history of the applicant. Sometimes they avoid being high interest or reject the loan due to poor credit history can’t be borrowing the funds.
These profiles can display on a peer to peer lending online platform where investors can assess these profile to determine money exchange. A borrower can receive the full loan amount what they ask to form investors. In case of these portions, the loan can be funded by one or more investors in the peer lending marketplace. They may have some multiple sources to repayment monthly to make an individual source.
The P2P platform connects the people like investors to borrowers with attractive interest rates. By the process of loan can generate income in the form of interest which earned through saving vehicles, accounts, and CDs. From another process, P2P loans can give borrower’s access to the financing they may not get approval from the financial institution.
Securing the loans from the P2P platform: These platforms look like a small seed that offers a personal loan with the unsecured manner to look over the loans are student loans, commercial and real estate loans, payday loans, business loan, and home loan. Since the investment of the peer, a loan is not that much secured to have funds among different borrowers.
- Sometimes conducted for profit
- Not necessary common bond to relationship between lenders and borrowers
- Intermediation with lending company
- Online transaction takes place
- Lenders may choose the borrowers to invest in P2P platform
- The loan can be secured to protect by government insurance protection funds
- Loans are secure to transfer others to provide the transaction facilities or free pricing choices.
Early peer-to-peer lending was also characterized by producers and customer reliance on the social network to start disappearing. By the emergence of internet and e-commerce, they are getting true way make possible with traditional financial intermediaries. So the people can take it easy with less default member in social network communities. By the emergence of new intermediaries has proven to be time and cost saving.
Provide some intermediaries service using peer to peer lending platform:
- online investment platform to get borrowers can attract lenders and investors to identify and purchase loans to meet their investment criteria
- the loan can approve for the development of credit models
- They can verify your identity, bank account id, employment income.
- The borrower can check the credit and filter the unqualified borrower
- The customer service can be borrowers to collect payments from lenders
- They complain any legal issue should be reporting.
- The P2P platform they find new lenders and borrowers in the marketing business.