https://medium.com/@info_60688/what-is-peer-to-peer-lending-6d714dadc4e2
An article on peer to peer lending by Btccredit to explain the proposition of lenders and borrowers.
Do share your comments and suggestions.
An article on peer to peer lending by Btccredit to explain the proposition of lenders and borrowers.
Do share your comments and suggestions.
I think it's more convenient to use p2p lending thank banks. However, with regards to security traditional lending is more secured than p2p lending. P2P lending cuts off interes rates from the bank plus service charge or fees. A lot of p2p lending had popped-out in our country, it's really easy to apply and it only takes hours or days to be approved. The lender takes higher risk since there's no way or limited ways for them to verify credibilty when it comes to timely payment.
You are right. Were the new p2p lending based on crypto or just fiat based?
And about the risk of lender in p2p lending we are offering crypto collateral for borrowers before lending them. This will be not needed in future when users develop their credibility with their successful transactions.
Currenlty they are just offering fiat. What lacks on their system is the collateral. They only require KYC and necessary documents, the first loan is just small just like 20$ payable within 15 days with an interest of 10%.
Once clients paid his/her first loan they can get higher loan amount on their next loan.
In this part, lender is at risk, a lot of clients are not paying them on their first or second loan. Lender won't even bother reporting this since the cost of filing a case and hiring a lawyer will cost more than the loan.
