the bank or credit union. If a person goes to the bank, for getting a loan, the bank will grant the loan, by using some of its assets deposited by other customers.
The peer to peer lending apps provide both the borrower and lender with the ability to select the loan/investment they want to opt for. As compared to conventional means of loan lending, P2P lending apps make the lending and borrowing process more convenient.
It is a win-win deal for both the borrowers and investors. However, it has its pros and cons. Here you can find out what these are:
The advantages for borrowers:
- P2P lending apps make loan generation faster.
- The loans are provided at a lower rate of interest.
- It assures the borrowers of monthly payments.
- The credit requirements are less strict with P2P lending apps.
- Provides additional flexibility on how to gain and use funds.
The investors also get hugely benefited with P2P lending apps as the leading platforms:
- Provide higher yields than conventional methods of lending.
- Give an additional investing option to shares and bonds.
- Are flexible in terms of the amount that can be invested in any portfolio.
These benefits are for real, as recent research by Allied Market Research found that the P2P lending market was valued at $67.93 billion in 2019. It is estimated to grow even further with a CAGR of 29.7%, reaching $555.91 billion by 2027.
Given the popularity of peer to peer lending apps, it is recommended that the app you build have all the necessary features and most importantly, is built by, and peer to peer lending app development.
Typical Process of Getting Loan from P2P Lending Apps
Step-1: Investor Signs Up
The main USP of a peer to peer lending app are the investors themselves, as borrowers would not usually have easy direct access to individuals that are ready to provide finance. At the first step of the app process, the investor or lender will create their account with the P2P lending app. The investor then feeds in the amount that he/she is ready to lend to the potential borrowers. The details that he/she provides often includes the following:
- Personal information (Name, Identity Proof, Address, etc.