Why would an individual borrower come to a Peer-to-peer lending platform to get finance to address his/her financial needs rather than go to a bank or another financial institution?
Peer-to-peer lending, in its essence, is when individuals invest money in other individuals to address the latter's short and medium term financial needs. The system omits banks and other intermediaries that may have an unfair advantage over the investors. As, it is privy to the exact needs of a borrower and the price the borrower is willing to pay to fulfil that need, which an investor is not aware of.
Investors in term deposits, individuals with savings accounts as well as borrowers from banks aren't even aware that such asymmetry of information exists. Account holders are forced to let the banks take investment decisions for them.
In a Peer-to-peer financial eco-system, borrowers are verified in a fair and unbiased manner regardless of their sources of income (salaried, self-employed and professional) giving them a higher chance of selection and actually getting a loan. A peer-to-peer lending system is also cheaper for borrowers as they do not have to pay any of the bank charges, processing charges and the interest rate is based on their actual financial capability based on a comprehensive credit assessment.
At Lendbox, we give the borrowers a thorough and comprehensive credit check taking into account several financial, social and personal factors to determine their repayment capacity and creditworthiness. We will make the entire process quick, hassle free and fully transparent where borrowers can come on board and borrow for as low as 12% to meet their short and medium term financial needs. So if you are in need of finance, then register as a borrower today on Lendbox.