A detailed guide about Peer-to-peer (P2P) lending
Peer-to-peer (P2P) lending is a kind of direct lending to individuals or businesses with no official financial institution participating. Generally, the transaction is completed through online platforms that make lenders meet potential borrowers.
The P2P lending model is based on the crowd-funding model. It provides flexibility, convenience, and the choice of borrowing and lending. Many P2P lending platforms are organized as Non-Banking Financial Companies (NBFC).
A borrower can avail of both secured and unsecured loans via P2P lending. But most of the loans are unsecured personal loans. This industry does not usually see secured loans and is backed by luxury goods.
Many individuals view peer-to-peer lending as an alternative source of earning. Bonds, stocks, mutual funds, gold, and oth...