Situations like these are not unfamiliar to most of us. While we try our best to safeguard ourselves against financial setbacks by planning for the future, sometimes unexpected events lead us down the road of availing a loan. Banks and other financial institutions have a plethora of loan products to cater to almost all exigencies. However, the stringent sanctioning procedures and the rate of interest charged can be a huge deterrent and can force borrowers to look for cheaper and hassle-free options.
Peer-to-Peer lending is the latest financial tool which allows borrowers of reasonable credit standing to avail loans at relatively lower rates than those offered by banks &financial institutions. By connecting borrowers directly with the lenders, it removes the intermediary costs and helps borrowers get better interest rates.
Conventionally, if you need a loan, you submit an application with a bank or a financial institution, provide your documents, wait for your profile to get sanctioned and hope that the approved loan amount and interest charged is as per your requirement. Peer-to-peer lending removes borrowers from such a passive role into a highly active participant in the borrowing cycle. It empowers you, as a borrower, to negotiate the loan amount and the interest rate directly with the lender.
Usually, banks look at CIBIL scores to determine the credit standing of borrowers. People-Lend uses CIBIL and other aspects like location of residence, trends in expenditure, qualification, credit card history and many more factors to assess the creditworthiness of prospective borrowers.
People-Lend is a faster, cheaper and simpler platform to avail loans.