Peer to Peer Lending
What is Peer-To-Peer Lending (P2P)?
Peer-to-peer (P2P) lending enables individuals to obtain loans directly from other individuals, cutting out the financial institution as the middleman. Companies that facilitate peer-to-peer lending have greatly increased its adoption as an alternative method of financing.
P2P lending websites connect borrowers directly to investors. The site sets the rates and terms and enables the transaction.
- P2P lenders are individual investors who want to get a better return on their cash savings than a bank savings account or CD offers.
- P2P borrowers seek an alternative to traditional banks or a better rate than banks offer.
Why Peer to Peer Lending :
The Reserve Bank of India (RBI) regulates Peer to Peer Lending platforms to protect the interest of lenders and borrowers. P2P Lending is taking-off steadily in India. If you haven’t investing in this new asset class, this is the best time for you to start investment, especially when the RBI started regulating P2P lending activity in India.
Solid Returns
Sustained high returns on investment make P2P lending a sought-after investment option for fixed income investors. Across the world, it is used as a diversification tool by HNI’s and institutions.
Monthly Cashflow
P2P lending is the only high return instrument to fetch monthly cash flows with interest payments. Unlike other/ traditional investing instruments, cash flow is not tied to maturity and starts immediately after the investment.
No Volatility
Traditional instruments such as equity, forex, commodity etc. have high volatility inherent to them, resulting in notional or actual losses. P2P lending is unique in that way, which offers zero volatility with expected returns.
MJ WEALTH has partnered with some of the leading RBI regulated Peer to Peer Lending Companies.
Disclaimer: Reserve Bank of India & MJ WEALTH does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed above and does not provide any assurance for repayment of the loans lent thru P2P lending.
