How it works
YOU CAN CHOOSE WHERE TO INVEST FROM FOLLOWING PRODUCTS
- Peer to Peer lending platforms use state of the art computer systems and internet technology to provide a win-win solution for borrowers and savers.
- Savers can earn high rates of interest by doing what banks do – lending money to credit worthy consumers and businesses. Borrowers have an alternative source of financing and can get better terms from P2P lenders than from banks.
- Borrowers apply to P2P lending platforms for loans just like at a bank or finance company.
- P2P platforms use many of the same tools and techniques that banks use to evaluate each loan application. Borrowers that are not considered to be credit worthy are rejected.
- Each loan is assigned a credit rating. Borrowers with higher ratings pay a lower rate of interest and borrowers with lower ratings pay a higher rate of interest.
- Each loan is divided into many small pieces, just like a bond issue. So one borrower actually borrows from many savers.
- Savers can lend small amounts to many borrowers and build diversified portfolios of P2P loans that match their risk tolerance, investment horizon and interest rate requirement.