Friday, 8 January 2016

How can you help yourself! – A Lender’s perspective.

In the world of Peer-to-peer lending a lot has been discussed from investment and lenders point of view and what risk do they face.

However, there is another key stakeholder in the entire chain of Peer-to-peer lending The Borrower.

From a borrowers perspective peer-to-peer lending is an Alternative Financing mechanism a place where one by passes the traditional financial institutions to achieve either of the following objectives:

1. Lowering cost of borrowing

2. Flexibility

3. No prepayment fee

4. No constraint on the purpose of loan

So while as a borrower you can achieve one or more of the above objectives through peer-to-peer lending; it is important to understand and work on some of the aspects to have a successful loan application and funding. These aspects are:

1.       Complete your profile

Please ensure that you complete your profile once you register as a borrower. The faster this process is the quicker you would be approved and you would be able to obtain benefits of your registration.

2.       Be Transparent

This is the single biggest factor to decide whether you would receive a bid or not. Please note that both the P2P lending website and the lenders conduct thorough diligence of the documents that you submit. Further, all lenders and the P2P lending website are free to ask any questions from you (as a borrower). Any factual inaccuracy mentioned by you can lead to either non approval of your loan listing, lowering of your credit rating or non-receipt of bids from the investors.

3.       Give as much background on the P2P lending website as possible

When you are registered and apply for a loan you are competing with other borrower for investors money. The more information you share on the website about yourself, background, rationale for loan etc. the better it is from your candidature perspective.  

4.       Submit as many documents possible      

Irrespective of whether you are self-employed or salaried individual, submitting relevant documents supporting your loan gives credibility to your loan and your candidature.

5.       Keep your social profile clean and upto date
 
        One of the important credit checks is that of your social profile. Please ensure that your          social profile is upto date and clean. The world is getting online - please ensure that you are clean with respect to your web presence. Also please note that creating 'fake' profiles or 'dressing up' your profiles do not help (unfortunately)

Please note that you can help yourself by following the above steps you have to make sure that you are giving as much comfort as possible to the lenders to invest his money in a peer.

If one thinks that Peer-to-peer lending is an easy way out than traditional financing you might be in for a surprise by not receiving appropriate bids!

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@RupaiyaExchange is a virtual market place for Peer to Peer Lending.

#peer-to-peer lending #p2plending #loans #borrow #fintech rupaiyaexchange.com

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