Everybody wants a secure future, and getting an investment is the most obvious answer. However, with tons of investment opportunities out there, it’s not surprising that you’ll be overwhelmed by where to start or what to choose. Usually, you’ll hear about cash bank deposits, bonds, stocks, mutual funds, real estate, etc. But have you ever heard about investing in a consumer loan or peer-to-peer lending? If not, this is the best time to consider and know how it can benefit you.
What is a Consumer Loan?
Based on the Business Dictionary, a consumer loan is a certain amount of money granted or lent to an individual, most commonly unsecured. The purpose of the loan can vary from household to family and other personal purposes. Simply put, a consumer loan is when you lend your money to a lending business.
Sometimes, this type of loan is also known as consumer credit, and one type of loan is a personal loan. At first, consumer lending is only limited to the banks, but as peer-to-peer lending platforms increase in popularity, everyone can become an investor too. But how does this investment platform work?
How Does Consumer Loan Work?
With consumer loans, you can earn extra cash by lending your excess money to a borrower with the help of a third-party company that offers a P2P lending platform. This company will provide a list of individuals who qualify for a loan. Then, you must choose the type of loan you want to finance. As the borrower repays the loan, you can retrieve your capital and interest.
Are you considering a P2P loan investment? If you are, you can look forward to earning great returns at Vidalia Lending. As an investor, you are guaranteed that you don’t have to worry about collecting loans, marketing, and, of course, your capital. We know how much you value your capital; thus, Vidalia Lending offers promising security to your invested money.
Why Consider Investing in a Consumer Loan?
1. Have a higher interest than your savings account
It has been old investment advice to put your money in the bank rather than keep it in your secret treasure chest at home. At the very least, the bank can grow your money because of the interest. However, in today’s fast-paced world, does this strategy still work? Technically, it still works; however, if you are looking for a high return on your investment, you might be disappointed. Investing in a consumer loan offers a higher interest than your savings account.
The interest varies depending on the loan you have funded, and of course, the bigger the capital, the bigger the interest you’ll get. Technically, it still works; however, if you are looking for a high return on your investment, you might be a little disappointed. Investing in a consumer loan offers a higher interest than your savings account. The interest varies depending on the loan you have funded, and of course, the bigger the capital, the bigger the interest you’ll get.
2. Does not require a significant capital
Unlike other investment platforms, P2P lending accepts a lower amount as a minimum capital. Initially, you might have thought that starting a business is a better investment since you’ll know where your every penny is going. However, you must realize that aside from the burden of managing your business yourself, you have to have significant capital ready in the first place. Being an investor in a P2P lending platform will lift your responsibility for both of those points because they only require low capital, and you do not have to think about anything, as the P2P lending company will do all the work for you.
3. You can calculate the risk
It has become a common understanding that you can only become an investor if you have a high-risk tolerance. However, no matter how much of this is true, it is another story if you invest in a consumer loan. Why? Simply because you can calculate the risk. You can diversify your investments so that your money is not only on a single loan, plus you can choose a lending company that offers security to your capital.
4. Does not require complicated knowledge
Before investing, you need in-depth knowledge about investing and precisely how your chosen specific platform of investment works. For example, you’ll have to learn everything involving real estate to get a mortgage investment, like applicable laws, financing, etc. On the other hand, if you choose to be an investor in a P2P lending company, you only need to learn about their terms and conditions; once you are sure they are legit, you can directly apply online.
5. Another source of income
Admit it or not, life’s getting more challenging, and you will never be able to grow your money if you only depend on your job for income. Well, unless your salary is over P100,000 a day. Getting a consumer loan investment will provide you with an extra stream of income and will secure your future.
Work toward a financially secured future through Vidalia Lending’s P2P loan investment platform. Join our growing community today, and add more income to your income through investing for a minimum of P5,000. If you want to know more about how our efficient investment platform works or want to create an account, visit our Invest page today.