Peer to peer lending

March 14th, 2018 | by admin
Peer to peer lending

Peer to peer lending today is an amazing method which is in demand among the lenders and savers who want to receive a bigger income from their money. No wonder that while there’s the inflation growth, peer to peer lending with its low interest ratesand a good passive income has become so popular among the customers over last few years.

If you are thinking about choosing peer to peer lending as the option for investing your money, you should know more about it. All the same, it’s a comparatively new thing on the market. We have prepared some basic information for you to know including the benefits of using it as well. After reading this, you’ll be able to decide, whether you need using it or not.

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P2P Lending. What is it?

It has been already 10 years since peer to peer lending(also called the direct lending) has appeared. But only over the last years it has become a part of the mainstream asset classes. In short, everything works very easily. On p2p lending platforms the investors can find potential borrowers who can be the individuals or business companies. As p2p lending platforms have got operating costs which are lower, they can give investors higher interest rates. These peer to peer lending interest ratesare different on various websites, but they’re higher than in the banks. That’s why p2p lending investing can be a good idea for the first online capital investments.

What pluses of p2p lending can we mention?

Investing in peer to peer loans is the interesting thing with some features which we mention to you.

The choice is yours

Lenders can choose not only investing in business loans orin personal loans; they also can choose people they want to lend money to. For instance, you can choose only those borrowers who have a business or a property just to be sure they will be able to pay the loan out.Good returns

With p2p lendingafter your financial investmentyou can get comparatively higher returns. For example, the income from your bank account can be half as much.

Allowance of personal savings

“Personal savings allowance” includes every interest you get from peer to peer lending investing. For individuals who pay a basic tax it starts from $1000 and $500 for payers of higher rate.


On peer to peer lending sites lenders can spread their money from investments into different loans – it is called a diversification. It helps to reduce the possible risks. Look. If $3000 is spread over 100 loans and one of these loans defaultedthe potential loss is only $30.

Quick access to your money

A lot of p2p lenders,in the case of necessity, let you liquidate your funds. Many P2P lenders let you liquidate your funds before the loan ends. Certainly, you should check on the certain platform. In general, the clients of companies are able to fully liquidate their positions within 24 to 48 hours.

Peer to peer lending regulation

Peer to peer lending uses such thing as regulation because of its protection of the consumers. The majority of peer to peer lending websites are regulated by FCA. So, take it into consideration while searching for different platforms.

Two main things to check on theonline peer to peer lending platforms are:

  1. The experience, the time the platform’s been running. It confirms that you can rely on such platform. Obviously that the more experience it has the better. We recommend the website https://grupeer.combecause of its reliability and hundreds of satisfied clients.
  2. Do the platforms have the same interests as you have? Do they invest in the loans together with you?

Peer to peer lending Europe is developing and becoming more and more popular. So, if you want to start investing in peer to peer loansget acquainted good with it and only then make up your mind. Good luck!


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