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Why is Peer to Peer Lending Beneficial?



The way we invest has changed! In the 1990's owning large tracts of land was thought to be a sign of the wealthy. In the following decade and the move of estates into gold was an increasingly important factor in assessing the financial standing that a person. The situation is a bit different today.

Technology is at the forefront of this shift in the way investors invest from all categories who believed the need to adapt in the course of time. Peer to peer lending is a Peer to Peer lending platform serves as an intermediary between two people with similar requirements in terms of money. You can also know more about peer-to-peer lending via crowdfunding-platforms.com/.

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While the circumstances could be completely different, the basic principle is the same. Peer to peer lending became popular during a time when financials weren't working as expected. At the time, a well-known investment asset class was to be fixed deposit accounts, which was logical at the time as the rate of inflation was not all that excessive. 

Stock market or equity investments, on the other hand can increase in value as time passes. Studies have shown that the returns of equity investments outperform returns of other investments over the course of time. The average annual return for equity markets is about 16 percent. 

The loan seekers, also referred to as borrower in P2P lending terminology, gain quick accessibility to funds. The time it takes to disburse funds by the P2P lending platforms in India is extremely fast. There's a variety of reasons for obtaining these loans as well, ranging from financing weddings or planning a vacation.