Since the dawn of the civilization loans have been an integral part of the day to day life – at some point of our life everyone requires an assistance to accomplish needs. A loan is required for different reasons such as buying a new home, travel, education and many more. After the introduction of monetary system, traditional banks become a primary source for all the credit requirement. But even our banking system have failed to provide the sudden monetary requirements of many a people. The expansion of internet to masses from the starting of 21st century has enabled the businesses to provide easy and quick delivery of loans.
Peer to peer lending through online platforms are a result of that only – creditors and debtors can interact at the same platform, thus resulting in an easy loan process. Currently, there are more than 30 online websites which promises the same but only few are able to make it really easy for users. In user’s point of view, the top 5 peer to peer lending websites have been included in the list.
Here it goes.
Lending Club is the world’s biggest online market place of lenders and borrowers. It provides a cheap lending and high returns for investors. The main reason for affordable loans is – reduction in operational costs what is prevalent in traditional banking. According to a survey the interest rates on loans taken from Lending Club is 33% cheaper than what they pay for their outstanding loans and credit cards.
Similar to Lending Club, Faircent is also an online market place where lenders and borrowers can register and then interact with each other to strike a deal of lending or borrowing. When a user registers, Faircent undertakes a detailed verification process in adherence with RBI guidelines of KYC. Once they are satisfied with the verification they provide membership to individuals (only Indian citizens). However, it charges an upfront fees once the deal is fixed between a lender and borrower.
It is India’s first online lending website which provides a platform to potential borrowers and lenders. The borrowers and lenders strike a deal among themselves and there is no mediation done between them. However, they take a minimal (lower than banks) fees from both lenders and borrowers once the deal is fixed.
NeoGrowth is non-deposit taking and non-banking financial company registered with RBI. It focuses on business to business (B2B) loan services. They provide loan services to small businesses and retailers. They have some unique facilities such as Partnership Model – retailers don’t have to think about their monthly instalment, they wait till the cash flows in their plastic money.
Milaap is an Indian peer to peer firm which helps in raising, lending and donating money for the causes individuals care about. The entry of Milaap with others in this list might seem odd because it doesn’t provide loans for your personal needs. But it definitely helps you to make a contribution towards the society. You can raise funds or extend a loan for the project you are passionate about.