Why is P2P lending a better solution than the banking systems? |
Posted: November 19, 2018 |
We all know the frustrations caused by traditional banking systems when it comes to loans. Queues, long waiting hours, unsatisfactory results are all associated with loans. But what changed this whole scenario is the introduction of P2P lending. There are various reasons why P2P lending a better solution than the banking systems when you are in need of immediate funding. Let us see what these reasons are.
Advantages of peer-to-peer lending Also known as P2P lending, peer-to-peer lending is the best alternate solution to funding. The advantages of peer to peer lending in India come from the fact that it circumvents the need of an intermediary such as the bank. This leads to many benefits, some of which are as follows: 1. Less documentation P2P requires way lesser documentation than the banks. Being online, the customers need to merely scan and submit the required documents. 2. Quick funding Since the borrowers connect directly with the customers, they can avail funding at a quicker pace than what the banks would provide. This is how one can avail funding in less than 2 days, which makes it the perfect option of finance when it comes to emergency situations. 3. Hassle-free procedure As with the case of all online services, P2P lending is hassle-free. It requires very little documentation and one can save time and money which would be wasted running the stairs banks. 4. Lower rates of interest P2P lending has lesser overhead charges as it is online. This makes it possible for the customers to avail a lower rate of interest than the bank.
How does P2P lending offer such quick service?
P2P lending is capable of providing quick services due to the absence of an intermediary. Though the only intermediary in it is the P2P lending portal, its primary function is to connect the investors with the borrowers and to provide other benefits to the users. P2P lending is useful not only to the borrowers but also to the investors. It offers ample investment opportunities to the investors, and therefore, investors choose P2P lending over other investment options for quick and efficient results.
|
|||||||||||||||||||||||||||||||||||||||||||
|