Things to check before opting for P2P lending
Things to check before opting for P2P lending https://www.fundstiger.com/things-before-opting-p2p-lending/ Peer-to-peer lending, or more popularly known as P2P lending, is the online financial framework that connects lenders and borrowers on an online platform without a bank acting as the third party. This lack of intermediaries, and subsequently the lower costs involved, make P2P lending an attractive investment opportunity. In P2P lending, some structure is being brought by the Reserve Bank of India (RBI). The P2P entity, which brings the lender and borrower together, cannot offer any guarantee on the loan. RBI regulation states that the P2P “shall not provide or arrange any credit enhancement or credit guarantee”, so the lender has to go for unsecured lending. What then are the security features in this form of lending? The service provider or the P2P entity, provided it is a serious market participant, would list on the website its role, how it can help you and how they c...