Skip to main content

Know more about peer to peer lending in India

Anyone who is looking forward to investing money in peer to peer lending online services, then that person needs to have proper knowledge about it.
Without knowing about the risks and returns of lending, one shouldn’t opt for investing in it. It is really necessary that one decides to consult professional and experienced lenders so that one is able to find out the right online company to begin investing.
Here you can find out some things which you should remember before lending your money to borrowers:

Always choose a trusted company

When you are looking forward to lending money online to borrowers through a lending company, it is necessary that you look for the one which is trusted by people and is registered with the government. It should have been established in the market for a long time as it can be risky to trust the newcomers. When you choose a company with a license from the RBI, then there are lesser chances that you will face any frauds or other problems.

Don’t forget to pay attention to the defaulter rate

When you select a lending company, then you have to look at its defaulter ratio. The defaults are increased when the borrower isn’t capable of paying back the amount to the lender. You should check the risk category and default rate while selecting any borrower. You should have a look at the credentials of the lending company. Return on investment is totally dependent on the financial profile of the borrower. This is why you should not make the wrong decision while choosing the lending company.

Check the profile of the borrower

The main benefit of choosing a trusted peer to peer lending website is that you will be able to know about the borrowers with low, medium and high risks. By checking the profile of the borrower, one can know if it would be risky to invest or not. If you want to get nice returns on your investment, then it will be better that you choose low-risk borrowers. If you are only looking for high returns, then it might make you fall in the trap of losing money.
When you are lending money among borrowers, then it is better to diversify your investment (this means that you should spread money between different borrowers). You will face lower risks with it and can earn better ROI. If you find high-interest rates on the borrower’s portfolio, you shouldn’t necessarily get attracted to it because it may involve a higher monetary risk.

Begin with smaller investments

Anyone who is planning to lend money to someone should always go for smaller investments because this can be helpful in making the right judgment. There are many people who are looking for the cheapest loans in India. You can look for various lending sites where the ticket size would be different. It would be a lot better if you will lend a little amount of money to different borrowers in the beginning to prevent any risks.


Popular posts from this blog

Benefits Of Home Automation And Smart Appliances

Any human being living on this Mother Earth needs three factors for survival. They are food, clothing, and shelter. And when you have your own home, it is the safest place for your family members. There is seldom any home, in any part of the developed world, which does not have home appliances. In recent times, it is home automation which is the order of the day. In this article, let us discuss the benefits of home automation and smart appliances.

So, what was the first impression you got on the title? Saving money and state-of-the-art electronic appliances. Shall we look at some?
1. Benefits Of Home Automation - Savings

Let it be any smart home electronic appliance, they will save energy. Yes, they may be more expensive, but they will cut utility costs. There are some appliances which can be used for monitoring water usage. So, they can put a firm control on huge water bills.
2. Benefits Of Home Automation – Safety

When it comes to home automation technologies, prime importance is given t…

How to Clean Your Washing Machine

Are you surprised by the title? Usually, a washing machine is meant for cleaning and washing the clothes, but cleaning the same equipment, the title sounds weird. But have you noticed, sometimes, the clothes coming from the washing machine is not as clean as per the requirement? In this case, the washing machine needs cleaning. So, when you put the clothes in the washing machine, after the washing process, where does all the dirt get removed? Yes, you know that it gets out via the drain, but some residue will always remain. And there are times, you can find the light faint marks on the dark colored clothes. Now, that is an unfortunate situation and the washing process has to be done again. In this article, we shall discuss how to clean your washing machine.

Washing machine Cleaning - Steps For The Process
If you have a top loading washing machine, the process is very simple. You just need to fill the drum with the maximum number of hot water in the machine. The components are chlorine b…

Raksha Bandhan(Rakhi): The Festival of Bond and Strength

Saga of Raksha Bandhan(Rakhi)
One of the most celebrated festival in India Raksha Bandhan also known as “Rakhi” falls in the month of August. Rakhi defines the bond between a brother and sister, which is one of the most special bond of nature. According to Mahabharata “Draupadi- wife of Pandavas” tied a piece of her cloth on the wounded hands of Lord Krishna, and in return Lord Krishna Later protected Draupadi from Kauravas by supernaturally providing her with Sari of infinite length, when the Kauravas were trying to disrobe her.

From then till now this act is being practiced all over India which shows the love between brother and sister.  In this Sister ties “Rakhi- thread of strength” on the wrist of her brother which is followed by exchanging sweets and gifts to each other. By tying Rakhi she prays for the long life of her brother and lets him know that he is the most precious person in her life.  The brother then promises to be with her in every ups and downs in life and protect …