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Why is Peer to Peer Lending Beneficial?

Investments have evolved! In the 1990's, the possession of large land plots was thought to be a sign of the wealthy. In the following decade, the move between estates and gold was an important element in judging the financial standing of a person. It's all different today.

Peer to peer lending is a Peer to Peer lending platform functions as an intermediary between two individuals who have similar needs in terms of money. Although the situation could be completely different, the basic reality is the same. You can also know more about peer-to-peer lending platforms online.

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Peer to peer lending became popular in a time where financials weren't working as expected. In that time, one most popular asset class for investment used to be fixed deposit accounts, which was logical at the time as inflation rates weren't so excessive. These accounts yield an annual rate between 7 and 8 per cent, which is low, and could not be able to beat inflation at present. 

Thus, money that is kept in a fixed-deposit account will yield negative returns year-over-year. This is not a wise choice. Equity or stock market investments, on the other hand, are able to grow in value in the course of time. Research studies have proven that returns of equity investments outperform returns of other investments over the course of time. 

Peer-to-Peer lending platforms can provide steady returns and almost no fluctuations. Based on the current interest rates available on the market, you could easily make up to 35% from the peer-to-peer lending website. The investor isn't the only person who benefits from this asset. People who seek loans, also known as the borrowers in P2P lending terms, have quick access to money.