Why P2P Lending Must Be A Consistent Investment Choice?

Jul 20, 2020

Investors all across the world are starting to consider P2P Lending as a must-approach opportunity for high and safe returns. Also, it’s a must-add to the investment portfolio these days. Considering its numerous advantages, here are some reasons why it must be a consistent investment choice. 

Grow eventually 
P2P lending is the only high-return instrument to compound monthly cash flows and interest payments for higher returns by the time of maturity. Allow your loan portfolio to grow steadily and profitably. 

Simplicity and full control
P2P investments are fairly simple to operate with requiring only periodic portfolio management checks as the P2P platform takes care of all other, right from repayment collection to borrower sourcing. The investor gets full autonomy in deciding the structure of his/her portfolio through custom selection of the amount and tenure they want to invest for. 

Diversify – To spread risk, keep a good mix!
Spreading your investment across a large number of borrower profiles from a different location, gender, occupation, etc helps in higher diversity and higher spreading of risk in your portfolio. Auto-Invest is an automated feature provided by LenDenClub which distributes investor’s investment for optimised and risk adjusted double-digit returns. This assists the investors to build a diversified portfolio faster and more efficiently. 

Strongest Credit System
P2P lending platform come from a large demographic pool, primarily consisting of salaried individuals. Each platform makes sure that the borrowers go through a stringent screening Mechanism. At LenDenClub, each borrower goes through a thorough 200+ data point screening mechanism ensuring lesser borrower defaults and efficient recovery support if at all he/she defaults.

Automatic Reinvestment
Rolling the profits back on the platform for further reinvestment ensures a compounding return on investment, making it a lucrative option for investors. Not only that, but it also gives returns that are higher than many traditional fixed-income asset classes. LenDenClub has consistently delivered returns of 10-12% p.a.* since 2017. Make sure you stay invested for longer tenures with a considerable amount to maximise your return on investment. As an investor, you just see the compounding effect while no need to get into the hustle like other instruments, where you have to keep reinvesting from time to time.

P2P is long-lived
Undoubtedly, there will never be a time when people stop taking loans. Unlike other asset classes – such as equity and mutual funds, P2P Lending is far less volatile and doesn’t involve you having to keep tabs on your portfolio every hour. With its high returns and safety, you could always earn solid profits at a consistent rate. Conclusively and unquestionably, P2P lending suits every investment necessity. Why don’t you understand more about Peer to Peer Lending and make the best investment decision for yourself, click here

*On platform level.

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