Falling short on your budget is quite normal. Borrowing money to fill in your expenses has become a part of the Filipino culture ever since. Some of us may have been utterly shy when it comes to borrowing money especially to their loved ones or close friends. Good thing there are financial institutions like P2P Lending which one can borrow money from at anyplace and anytime.
Aside from the traditional way of borrowing money from banks and the typical loan sharks colloquially known as “5-6”, online loans are now the quickest way to help you out financially. These online loans are also known as Peer-to-Peer Lending.
Speaking of online loans, you will be given a wide array of Peer-to-Peer lending options you can choose from to borrow money with just one google search. What makes it more attractive to people is that, it has also an investment feature. This investment feature allows people to lend money to other people who are in need. In return, borrowers are required to repay their borrowed money with an added interest.
Vidalia Lending has helped thousands of Filipinos financially over the course of years, we have also procured high customer satisfaction with every given service. As a result, we are highly recommended by our clients to future borrowers as well as future investors.
Also known as P2P lending, it allows people to acquire loans directly from other people through the use of a financial institution which poses as a middleman for each transaction. P2P lending companies typically operate online. Thus, this is why P2P is also known as online loans.
Peer-to-Peer is basically composed of a Lender or Investor, a Borrower and a P2P Lending platform:
- Lenders – these are the investors who fund the loans needed by the borrowers. The invested money is combined to other investors investment as well as the lending platform’s capital. Doing so provides varying amounts of funds to be borrowed.
- Borrowers – these are the people who borrow money from the investors (lenders) through the lending platform.
- Lending platform – this is a financial institution which acts as an instrument where people can Lend (invest) and/or borrow money.
How does Peer-to-Peer Lending work?
Typically, the common process of Peer-to-Peer are as follows:
- A borrower completes an online application from the specific online lending platform.
- The platform will assess the application and determine both risk and credit rating of the potential borrower.
- Once the application is approved the borrower will receive the money either via cheque or directly to his/her given bank account.
- The borrower will be responsible in repaying his/her borrowed money, depending on the terms and interest rate upon every scheduled payment.
Furthermore, it is also the responsibility of the financial institution to maintain its online platform. Note that it is essential for these platforms to charge fees for both investors and borrowers for their provided services.
Advantages of Peer-to-Peer Lending
P2P lending offers great benefits for both its lenders and borrowers. Discussed below are its primal benefits:
- Lower interest rate
- Higher returns to investors
- Accessible source of funding
With the growing needs of every individual and every member of the family, a months salary might not suffice them all. Acquiring a Loan is one great way to aide your financial needs. Here in Vidalia Lending, you are guaranteed with financial help in no time, so long as you passed the evaluation.