What advantages might a peer to peer lending site have for savers and borrowers when compared with using a bank?

The major benefits of P2P lending for individuals are: Lenders can enjoy returns several percentage points above those for a bank CD; borrowers enjoy similar cost advantages compared with rates at a bank or credit union. Many individuals like knowing who they’re lending money to and why they need the money.

Why are interest rates normally better on P2P lending sites?

Peer-to-peer lending provides some significant advantages to both borrowers and lenders: Lower interest rates: P2P loans usually come with lower interest rates because of the greater competition between lenders and lower origination fees.

Can NRI invest in peer to peer lending?

A. Sir, NRIs can invest in P2P lending only through their NRO account.

What is the difference between peer to peer lending and crowdfunding?

Crowdfunding gives investors an equity stake in the project they back; they literally take ownership of part or all of the project. By contrast, peer-to-peer is a loan; the money will be repaid by the borrower, plus interest, but no shares are involved in the deal.

What is Marketplace or peer to peer lending?

What is peer-to-peer lending? With peer-to-peer lending you quite simply borrow from strangers. This is also called debt crowdfunding, crowdlending or marketplace lending. At first, these platforms mainly provided personal loans, but this has expanded to business lending (sometimes called peer-to-business or P2B).

How profitable is P2P Lending?

According to Lending Club, P2P investors have earned average net returns (after fees and charge-offs for defaults) ranging from 5.24 percent for their highest-grade A rated loans to about 9 percent for their lowest-grade E, F and G rated loans. Not too shabby.

What are the advantages of P2P Lending?

Advantages of P2P lending for borrowers

• Online application for a P2P loan is fast and convenient.
• You may be able to access lower rates.
• Getting an initial quote will not affect your credit score.
• P2P lending provides another option for a loan to traditional lenders.