Vijay was happy. He got his salary today and wanted to invest his salary in some good place. He was just walking down the street on his way back home with sweets in his hand for his family. Suddenly, while walking down the street, he saw a sign board. The board gave two directions: to the left is a Bank and to the right is FinancePeer. Looking at the bank sign board, he got a big smile on his face. He thought of lending his money in the bank since he was not aware about FinancePeer. He always wanted to become a lender and lend his money somewhere so that he can enjoy the benefits out of it later. Ajay knew that there are many advantages of lending money.
So after thinking for a while on investing in a bank or not, he finally took steps towards bank. He went inside and deposited the amount in the bank. Now he wanted to enjoy the interest that he will earn out of it. He went home happily and slept peacefully. Next day, he went down to the bank again to deposit some more money. This way, he went down to the bank and deposited a huge amount by the end of few weeks. One day, it randomly strikes vijay that what if i want to use the money from my principle amount? What if only getting interest is not sufficient? What if i want to use the principle amount before the tenure gets over? All these questions started to haunt him.
Therefore he decided to go down to FinancePeer this time. All he know about FinancePeer was that it is a peer-to-peer lending company. When he came down to FinancePeer, he got to know about the services it provides and the best part was, even if he wants to use the principle amount without completing his tenure, he could use it. He went down to Financepeer, invested his money and started enjoying the benefits of high interest rates.
The thing he learned about FinancePeer was, since financepeer is peer-to-peer lending company, the money is directly given to the borrower. In the previous case, the money was staying stagnant in banks and the borrowers used to get it after a months time. In FinancePeer, the borrowers get the money within minutes. FinancePeer acts like a platform for exchange of money between lender and borrower which makes both of them happy. Vijay also realized that when you are investing in traditional system, only the branches of that bank are growing, but when you invest in Financepeer, the borrowers are also growing with lenders. Because of one lender, many borrowers are getting happy and the money is staying in the market. There is no economic disparity that will prevail in the market. Vijay was happy lending in FinancePeer. There will be money flow in the market and people will grow together.