What is a loan? The simple answer to this question in a layman language is a sum of money which is borrowed and has to be paid back with some interest on it. FinancePeer being a peer-to-peer lending company, acts as a platform between potential borrowers and lenders. It allows the potential lenders and borrowers to exchange loans directly, keeping sure the money flow in market. If the money flow is in the market, economic disparity won’t prevail and hence FinancePeer uses the dynamic approach towards loans. There are two types of loans that FinancePeer offers:
- Short term loan
- Long term loan
Short term loan: Short term loans are taken for a short period of time with limited amount (Rs 1000 to Rs 60,000). The subpoints mentioned below sum up the short term loan.
- A loan that is in the range of Rs 1,000 to Rs 60,000 – You read it CORRECT! You can borrow as low as Rs 1000.
- The tenure for short term is upto 6 months – You can borrow money from Rs 1,000 to Rs 60,000 upto 6 months and not more than that.
- Pay only ₹26 to 31 per ₹1000, per month – From the borrower perspective, the best thing about the short term loan is that, the EMI paid by borrower is as low as Rs 26 to Rs 31 per Rs 1,000, every month. The better the credit score, the less EMI one has to pay.
- Lend from as low as ₹100. Earn upto 37% pa – If you a lender, and you wish to invest your saved money, be it as low as Rs100, you can now invest in FinancePeer and earn interest out of it.
- Unsecured collateral free loans – The loan transaction is unsecured i.e no security is provided in short term loans.
- Simple monthly EMIs – Simple calculations performed by our team based on the bank statements to decide upon the EMIs to be paid by the borrowers.
Long term loan: A loan that is borrowed for long period of time with a higher than Rs 60,000 are specifically categorized in long term. The subpoints given below sum up long term loan.
- Borrow from ₹ 60k to ₹ 4L – In terms if borrowers and lenders, a long term loan will be from Rs 60,000 to Rs 4,00,000
- Tenure of 6 months to 36 months – The tenure of this loan is from 6 months to 3 years.
- Pay from 12% to 19.49% pa
- Lend starting from ₹1000. Earn from 11.23% to 19.67% pa – if the lender lends his money to a borrower with low credit rating, he gets higher rate of interest. The greater the risk, the more rate of interest lender gets.
- Secured collateral free loans – Long term loans are secured loans i.e the security is provided from FinancePeer. If the borrower defaults, the principle amount is returned back to the lender and also, FinancePeer takes all the legal police procedure instead of lender.
- Simple Monthly EMI’s – Like in short term, we have simple monthly EMI’s in long term which is calculated based on the monthly reports.