The process of lending money online or popularly known as Peer to peer lending is trending a lot these days. Gone are the days when people follow tedious bank procedures to borrow a loan but with change in digitization techniques, online borrowing has become a simpler process.
In the current scenario, many portals have started lending money online; at the same time loan borrowers are finding it easy to get speedy approval of their loans without much hassle. With the increase in the number of borrowers and lenders, there are a number of P2P loans available through such platforms
Here are some of the most popular loans available:
Loans for Business– The most popular loan segment on a P2P platform is to fund a business as there are many advantages when an individual applies for business loans through this procedure. Raising a business loan through banks and other financial institutions is a tedious process as they have elaborate financing schemes which take months to get processed. However, P2P Lending Platform works well for those who are in urgent need of money.
Debt consolidation– It is used when someone has multiple outstanding payments like credit card amount, car loan, educations loans etc. Having more than one payment at the same time is quite difficult to handle, so in order to keep track of all the payments, debt consolidation or merging of the entire loan in one is the best way out. It helps you in paying up the all the loans with remaining one in hand. Both personal loans and credit card outstanding amount has a very high rate of interest. Many people find P2P loan attractive for personal loan debt consolidation as their interest rates are more reasonable than others.
Family event or wedding – There are many events in life like a wedding or other ones when an individual needs extra money to conduct the affairs smoothly. It must be a lower amount but then at such times even friends or other family members back out. So, here P2P funding personal loans help in lending money at much attractive rates and at a faster rate which you can easily repay later.
Improvement of Home – P2P lending platform offers personal loans if you want to renovate your home. Banks also provide such loans but then, the process is too cumbersome as much documentation is involved. And after all such paperwork, most banks finance only up to 80 percent of the renovation cost and the balance has to be paid by the customer. However, at P2P lending an individual can secure full amount of funding in a faster, smoother manner with less paperwork.
Car or two-wheeler loans – Gone are the days when people prefer banks for approval of vehicle loans. Today, the P2P platform has become an ideal platform for people looking to buy a car or a two-wheeler. They can be secured within a few days and unlike, bank, P2P loans allows funding of almost the entire value of the car with accessories too.
Apart from these loans, other types of loans available on the P2P platform include education, consumer durable, and travel etc. So we can say that with an increase in awareness about P2P loans in future various other segments could also be included via the online platform.