Why is P2P Lending a Boon to the Aam Aadmi?

P2P (Peer to Peer) lending with TachyLoans

Indians love the idea of saving. But the reality? We’re not even close. Dealsunny.com states that “Nearly 3 out of 5 Indians have less than Rs 5,000 in their savings account or emergency fund”. That’s a bit alarming, isn’t it?

But the average Indian is not to be completely blamed. He/she isn’t the kind to have a sharp eye for movements in the stock market. Some of them still think mutual funds are as risky as the former. Gold? That another expensive story all together. Some are swimming in credit cards debts, and the expenses are piling up. The banks don’t seem to explain or understand. So how can they save? Well, say hello to peer to peer lending!

Peer-to-peer lending in India is a multifaceted affair. It’s a viable investment option, a great way to procure unsecured P2P loans in India, and a fantastic debt management tool. It’s fast, it’s online and it’s super easy. There are very few online lending companies in India at the moment. They act as platforms that facilitate organised marketplace lending, connecting lenders/borrowers across the country. Tachyloans is currently one among the best peer to peer lending platforms in the business.

But how is social lending in India good for the average citizen? Is it everything he/she had hoped for? It partially could be the case. Here’s why:

IT’S NOT ROCKET SCIENCE

Both for lenders and borrowers, peer to peer lending eliminates several complications. To begin with, it is quite easy to open and manage as an asset class. For borrowers, it removes a whole set of daunting procedures, furthermore cancelling the need for a collateral. This has made unsecured P2P loans in India a plausible reality, especially for the deserving.

IT BRIDGES AN ECONOMIC GAP

Peer to peer lending can be dubbed as the best use of technology in the fintech sector at the moment. In a way it’s helping the middle class and the SMEs in procuring quick personal loans online and it’s making a huge difference to them in terms of time, money, and resources.

IT’S NOT TOO RISKY

The average Indian has everything on the line. He/she can’t make financial mistakes that they can’t afford. Which is why peer-to-peer lending is perfect for their kind of a risk palette. They can either choose to lend with low/medium risk borrowers or the diversify the investment across the risk spectrum. In which case, they also make formidable returns.

IT’S UNCORRELATED.

Furthermore, as an investment option in India, it’s untouched by movements in the market. If one investment instrument fails, it does not follow suit. And come what may, even another demonetization scheme, p2p lending in India will only be minimally affected.

IT PROVIDES REGULAR INCOME

Although one must reinvest in online Money Lending as much as they can for high returns, it still remains a solid source of income every month. For any untoward events, emergencies and sudden requirements, lenders can count on p2p lending any day.

Want to give peer-to-peer lending a spin? Join Tachyloans today!