Myths About P2P Lending Platform

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Myths About P2P Lending Platform
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4 Myths About P2P Lending Platform
Myth 1 Peer to peer lending in India is not legal
Fact P2P lending is very much 100 legal
investment in India for two reasons. First, the
peer to peer lending companies in India (for
example, LenDenClub) adhere to KYC guidelines by
requiring documents such as PAN card, driving
license, passport, Aadhar card, voter ID, salary
slips and bank account number during
registration. Second, RBI has proposed P2P
lending regulations, which includes recognition
to P2P lending platforms as Non-Banking Financial
Companies (NBFCs) as well as the protection of
the interest of borrowers and lenders.
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4 Myths About P2P Lending Platform
Myth 2 The credibility of the borrowers is
unreliable
Fact The peer to peer lending companies in India
undertake a due diligence to verify the profile
of the borrowers. They verify borrowers
personal, professional financial details and
credit history. In fact, most of them also do
physical personal verification to ascertain the
authenticity of the information provided by the
borrowers. In case of any possibility of default
possibility or low credibility, these P2P lending
platforms reject to list the borrowers. Also, the
complete profile of the borrowers is displayed on
the platform for the lender to assess from their
own investment perspective.
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4 Myths About P2P Lending Platform
Myth 3 It is difficult to avail a loan through
peer to peer lending
Fact Borrowers can take instant personal
loans for the purpose of home purchase
renovation, car purchase, vacation trip, medical
expenses, family functions and any other purpose
they deem necessary. The loan can be availed for
any amount as minimum as Rs.25,000. Unlike the
banks, the registration process happens online in
a few clicks is very transparent, there are no
hidden charges and the funding is very quick.
Also, borrowers can reach out to multiple
personal loan lenders.
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4 Myths About P2P Lending Platform
Myth 4 Peer to peer lending is same as
crowdfunding
Fact Actually, this is not true. While both are
innovative forms of alternative investment and
share the same core concept, their purpose and
implementation differ from each other. In
crowdfunding, several individuals came together
to pool money to fund a project or an initiative.
In peer to peer lending, the investors and
borrowers come together to deal in
short-term, unsecured loans. A borrower can
borrow loans from multiple lenders, and in the
same way, a lender can disburse loans to multiple
borrowers. Peer to peer lending is an alternative
to the banking model of financing.
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Thank You!
If you are thinking to take instant personal
loans or invest money online then P2P Lending
would be the right platform instead of Banks.
To get more details visit our website
https//www.lendenclub.com