The evolution that the financial world has gone through has allowed for new and better ways of cash flow to exist. The need for funds is abundant throughout the country, with individuals and companies of all levels having the need to borrow, to fulfill a dream, survive an emergency or grow. Before the existence of banks and other financial institutions, from the beginning of societies across the globe, finances, and flow of assets from one hand to another has been of paramount importance for functioning. Not everyone in the economy has the capacity and the capability to be able to what an individual may wish or a company may want to accomplish. Across the table in the same situation, there are individuals or groups that possess enough capital for themselves and more, that they might want to invest for better gains. This where peer-to-peer lending comes to picture.
Also known as P2P lending, this is the process wherein funds are lent from the lender to the borrower, mostly on online platforms. This platform is devoid the involvement of any financial body or a bank.
The country has seen a surge in demand and popularity of P2P funding. There are various reasons why this kind of funding has gained popularity. The approval process for these kinds of loans works in a different mode. This may be dependent on the specific lender or may be decided by the platform, mostly based through the World Wide Web. The crucial advantage of peer-to-peer lending is that individuals who have a poor credit rating, also have an option to apply. The rate of interest is varied depending on the credit status of the applicant. Under such situations, securities may be requested to be kept, as a guarantee. Such securities may be items of luxury which may hold equivalent or more value. Examples may be jewelry, watches and even property.
With the rise in demand and accessibility of peer-to-peer loans, the number of options available in the market is ample. It is very important to understand and assess what is best for an individual or a company depending on what is best offered by the respective platform.
Funding Circle is a peer-to-peer lending company. After gaining failure through the experience themselves, the founders of this firm, based in the country, decided to create a brand from where small business owners to start or support their enterprise through its functioning. This firm has a lending bracket starting from $25,000 to $500,000 with a repayment period window of a maximum of five years.
Circleback lending is a name well known for the types of loans available under their banner. For personal loans, their bracket ranges from $1000 to $35000. They also offer payday loan with a limit anywhere between $100 to $1000. The rate of interest that the borrower will be placed under depends on their credit rating, tenure chose for repayment and the history of credit maintained.
