Hey guys it seems that youre really into it. Lets say, the borrower cant pay the percentage timely. Who will be responsible for this?
That will be the P2P lending platforms responsibility. Loans defaulting is part of the business. It is for banks. It is for P2P platforms aswell.
Currently most P2P lending platforms, offer a payback guarantee if the loan is more than a couple of months late.
At Welltrado we rate the platforms aswell. This means that if we register a platform doing bad "underwriting", and taking in risky loans that does often goes late / defaults. It will be reflected in their
Welltrado risk rating.
That means that every investor gets a reasonable chance to pick good loans, due to us giving them the information the platforms themselves are keeping back.