Is It Safe To Make Investments In P2P Lending During A Crisis Like Covid-19?

Jun 11, 2020

Is the crisis an opportunity? Doesn’t this question arise in your mind! Yes, you’re correct!

P2P Lending is an opportunity, where you do not have to use an official financial institution as an intermediary. It connects investors looking for high returns with creditworthy borrowers looking for short-term personal loans. 

Now imagine the situation of crisis. Monthly wages deteriorating. Unemployment spikes. The crisis affects nearly everyone. For each one, it is a true disaster. So, during the crisis, the risk of losing the invested money is quite decent. Although investments could be insured and/or secured by the lending platform, the situation is not as easy as it seems.

Let’s understand how you can safely invest in P2P Lending during a crisis like COVID-19 pandemic which is affecting the Indian economy substantially and creating doubtful situations for each one of you.

  1. P2P lending provides an online platform where everything is conducted online so an individual doesn’t have to take the stress of maintaining social distancing unlike banks need to be extremely cautious about it. 
  2. To get the required loan from a bank, an individual must have to go through a very long and time-consuming process, which can take up to months. Banks have stringent regulated institutions, and if an individual has any issues with credit history, the banks will more likely pass the opportunity to lend him the money. P2P Lending, on the other hand, reduces the complexity of getting a loan. Besides, individuals who can’t get the loan from the bank can get it from a P2P lending platform.
  3. Also, you must be thinking, how our money is safe with P2P Lending during such a crisis when there is a shortage of funds in the market. The P2P Lending institutions suggests do not worry about it since they follow a very strict process of verification for both investors and borrowers.

LenDenClub is one of the best P2P lending platforms in India. The reason is each borrower is assigned their respective risk category after considering their credit history, income, expenses, lifestyle, current obligation, family status and many more factors. As an investor, this information will help you make an informed decision on whom to lend your money to.

All the transactions on P2P Lending platform LenDenClub are transparent. All the fees, charges and commissions associated with each transaction are mentioned. All the procedures are completed online. Therefore, you can lend money hassle-free. To start lending money, you only have to create an account on our platform and complete the required online verification process.

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