Peer-to-peer lending has gained popularity since a while now. More and more lenders are keen on investing in p2p and helping other people in need. A lot of investors want to keep p2p as one mode of income. By doing this, they are keeping their option investing open as well as helping all the borrowers who are in urgent need of money. However, when it comes to money, people are very skeptical. There are many concerns regarding the safety in peer-to-peer lending majorly related to risks involved.
P2P is one of the best place where you can invest instantly / borrow loans instantly. It showers with much more higher rate of returns as compared to the traditional financial system. It is because of p2p that the borrowers who are in instant need of money can apply for loan through an easy and user friendly way and get the money without any hassle instantly. Since it is spreading like a fire, many lenders have expressed interest in investing. Their only concern is safety, security and risk involved with it.
SAFETY FINANCEPEER PROVIDES TO RISKS:
The major safety from the risks involved when it comes to peer-to-peer lending are:
Risk 1: Default by borrowers: The risk involved in this category is about the borrower is the risk of default by borrowers. If you lend to such a borrower whose creditworthiness to repay the money is less, then there is a high chance of borrower default.
How financepeer helps: Financepeer takes into account 13,000+ data points. These data points help the company to understand the borrower’s profile completely and thoroughly. A few of the headers include:
- Demographic data: Data such as name, age, address, gender, mobile no, aadhar card, pan card etc.
- Account data: Net monthly salary, savings, expenditure, digital payments made, digital wallet etc
- Social network: Individual’s presence on all the social media accounts, information about his connects, where the individual and connects work etc.
Risk 2: Recovery process: Lenders are always in a fear of investing in p2p though it yields amazing returns because even if the borrower defaults, the recovery team should be strong enough to get him back his amount from the borrower.
How financepeer helps: We have a good recovery system. If incase the borrower defaults, the recovery team will ask for money for a couple of months initially(say 3-4). Post that the team starts messaging all the connects saying that his friend is not able to repay loan. If this doesn’t work out then legal action is taken against them.
Risk 3: Trust factor: One of the other issue here is the trust factor. When it comes to lending money, people aren’t sure about the same in something which they haven’t really heard about. Since P2P is now spreading it’s roots at a faster pace, people are now being aware about the same. But still, they are not really keen on lending because they don’t trust the platform.
How fiancepeer helps: Financepeer has a user friendly, simple and hassle free process. Even a non-financial background person can understand the process without any issues. Also, it’s 24*7 availability helps the user to anytime communicate with the financepeer’s team via email, chat or call. The “always ready to help attitude” of the team members with relevant information is the best way through which other’s can gain the trust . Apart from that, the individual can read the testimonials/reviews of other peers and see their experience with financepeer.
In addition to the above information, financepeer is completely digital. All the documents and signature is done online. No manual work at all. So all these factors like:
- 13,000+ data points for calculating the credit score
- Simple and hassle free recovery system
- Completely digital
contribute to providing safety to our lenders.