How it works

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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.