The P2P Lending loan is a way to borrow without using a bank or a credit or financial institution that we have traditionally known. If you are in need of a personal loan or business loan, you definitely want to know some peer to peer loan platforms. If you are unrestricted and have no negative entries in your CPF or CNPJ, interest rates for this type of financing can be fairly fair.
Now anyone looking for bad debt, dirty name, restricted by SPC and Serasa, even borrows money, however, will be charged higher fees and interest because of the risk the operation offers to the investors who sponsored his credit application. The approval of the peer to peer loan for negative is affordable but with high interest rates.
What is P2P Peer to Peer Lending?
” P2P Lending: Peer-to-peer means point-to-point. The idea of P2P lending is to enable loans to be made between individuals (individuals or companies) without the intervention of a bank or financial institution. People who need credit find other people who have the money to lend as an investment. “
Another definition: P2P loans are loans granted by individuals (individuals) and investors (individuals or groups) – as opposed to personal loans that are being granted by private and financial banks that charge high interest for the grant of the requested money.
Many people who own money to invest use the to offer low interest cash loans to others (citizens and businesses) who need money. A P2P platform (with online site) brings together investors and borrowers so that in the process of granting loans they are relatively easy for everyone involved.
Benefits of P2P lending loans
P2P loans are not always better than personal loans made at a bank or credit union because it depends on the applicant’s customer profile, but they have unique characteristics that make them competitive, fast and efficient.
Low Costs: Often, you can get loans with relatively low rates using P2P loans. Collective loan in general is a much better deal than using the limit on the bank (overdraft), the credit card, or personal bank loans.
To get your loan on the many online platforms we have in Brazil, the interest rate is between 1% to 5% per month.
We can compare the P2P Lending loan as a personal loan with property or vehicle guarantee that has a rate of 1.15% and the payroll loan with 1.55% to 3% interest per month.
Quick and easy: When comparing a loan you need to have patience. After you sign up and fill out the forms online, you may have to wait two or more days to find out whether the application has been approved or not.
In P2P lending loans, this patience and waiting are relieved by efficient platforms and agility in the processes of analysis, approval and release. The application process is usually easy, and you can often find out relatively quickly whether your loan will likely be funded.
Credit Analysis: In a world where lenders are reluctant to lend money to clients or companies with restrictions and negative inscriptions on credit history, P2P loan lenders are one of the most attractive credit alternatives.
You will need to have decent credit to get approved, but if you have bad credit, the more expensive these loans will cost (with higher interest rates). But this is the case in whatever mode you request.
Types of loans
P2P loans are unsecured personal loans – you could borrow interest money for whatever purpose you wanted and will not leave any collateral to get the financing approval. This is the most common type of personal loan and are the most flexible: you can use the money to consolidate debts, take out a car, renovate the house or start a business.
If you want to loan for education, make sure this is possible or not on your peer-to-peer platform, some in Brazil begin to model other P2P Lending formats. Today, P2P lenders are specializing in offering various types of loans for specific uses (such as business and student loans).
P2P lending online sites and platforms lending
The list of platforms for P2P Lending loans is constantly growing in Brazil and in the world. The concept became popular here with Loanta and Dexus, both of which are still big players in the P2P segment.
If you want to get a loan, it is probably worth making a registration and an application of the amount you need. Whatever you do, research each lender and read reviews from reputable sources before applying for a loan. Read also how to make peer to peer loan and which companies make peer-to-peer lending.
How it works
To request a P2P lending loan, choose an online platform and begin the application and enrollment process. You will need to provide details about yourself, how much you want, and how you want to pay. Some ask how you intend to use the money.
Your registration is verified, your credit reviewed, and if you are eligible for the loan, your request will be listed for investors to fund your order.
Is it safe to borrow P2P Lending?
Of course, but that depends on what you consider to be safe, most online platforms are obsessed with customer data security and consumer credit.
They keep your information as secure as any private financial institution, and all communication is done through a session in the browser in an encrypted form with SSL TLS level 2 or 3.
Your identity will be kept secret with lenders, interest rates are generally competitive with what you may find elsewhere, you will certainly pay less than what you would pay for a personal loan at the bank and all data such as CNPJ, physical address, BCB regulations and updates are always available at the footer of the sites.