The p2p Investment Offers the Best Returns Now

Some investors who invest in P2P investment and peer-to-peer lending get double-digit returns: 11 percent, 12% – yes, some get even higher returns a year. But of course there is also a risk. Know your facts about P2P investment and peer to peer lending before investing.

The Aspect of P2P

P2P investment and peer to peer lending have become an area of ​​investment for those investors seeking higher returns because they have been disappointed year after year by the return on their savings and bonds. The P2P review on Viventor will help you a lot there.

P2P investment and peer to peer lending allow investors to invest in everything from unsecured personal loans to consumers, to secured loans with house and car collateral, and in return they are rewarded with interest rates of over 11-15% per annum, which might seem like the solution to the disappointing results in the past.

But P2P investment and peer to peer lending is an investment that also includes risk just like any other type of investment. Here’s what you should know before starting your investments.

Get started with P2P investment

How do P2P investment and peer to peer lending work?

P2P investment and peer to peer lending provide the opportunity to play bank, outside the bank. Like a bank, with P2P investment and peer to peer lending you can lend money, but P2P investment and peer to peer lending remove the intermediary, namely the bank. Instead of investing your money through the bank, you invest directly in loans from P2P investment borrowers and the peer to peer lending platform, such as Mintos and PeerBerry. You can also learn how to use Bondora lending platform.

As an example, loan applicants come to the P2P investment and peer to peer lending platform and fill out a loan application. They provide their basic information, which includes the loan amount and what the money is to be spent on, as well as a general assessment of their finances. The information then becomes available to current investors who can choose which loans they want to invest in.

On a typical P2P investment and peer to peer lending side, loan applicants can borrow the money and have to repay the money with a maturity of between 3 and 5 years, with the option of repaying the loan ahead of time.

The interest rates on the loans are set according to the creditworthiness of the applicants and there are usually a number of factors that include:

  • Creditworthiness of loan applicants
  • Income (debt and income conditions)
  • loan Amount
  • loan Purpose
  • loan Period 

On the credit side, contrary to what many people expect, the various P2P investment and peer-to-peer sites do not approve of poor credit (or companies), such as a private individual in RKI. In addition, they usually do not approve loans to people or companies that have recently had bankruptcies, lack of tax payments, etc.

One of the biggest benefits for investors is that you do not have to ” buy ” the entire loan. Instead, you just borrow small parts of the loans, which can be fractions of the loan and often down to 10 Euro. That way, you can spread yourself with relatively small amounts on many different loans, reducing your investment if you have a single poor payer.

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