Loan peer-to-peer lending – the name is in English but the results are in Portuguese, this is one of the fastest growing investment markets in Brazil, even more so in countries where savers are tired of ridiculous interest rates paid for savings and offers that are found in banks that are rushed just to ensure the best rates for themselves.
The returns to anyone who borrows money from peer to peer are good because the fees are excellent and the grant format seems to be a bit fairer than in traditional banks, and are certainly more attractive to anyone who wants to invest their resources to profit from this type speculation. But like any form of bond, this is not enough to stop being high-risk loans to those who put all their capital from an investor.
Is Peer to Peer safe?
” Peer to Peer is safe without a shadow of doubt ” is a great idea to tackle banks by creating a network or lending community where collective finance is truly egalitarian that connects investors, lenders, and borrowers in an environment that maintains a low cost for all.
Is Peer to Peer safe? Let’s find out in that article. The problem in this mode is that as the market grows in the industry and accelerates the steps, it also begins to take greater risks for all. In a normal credit environment, the higher risk would require higher returns, but we are not operating in a traditional credit environment. It is possible that the greater demand of platforms and investors seeking returns on capital will decrease the offer rates of all asset classes.
The peer-to-peer loan money is quick and easy and just as possibly it is a market where many are already looking for alternatives to the traditional loan. Today many small and medium businesses are already borrowing money on the online P2P loan platforms , more informed individuals are also already making their requests, including citizens seeking to loan for negatives.
What is peer-to-peer?
People peer to peer loans have grown rapidly and promises to foster a segment of the Brazilian financial market that has not been fully explored, at least for now. The P2P loan came to fill a gap left by banks as they cut credit since the onset of the financial crisis.
Online peer-to-peer credit platforms and sites generally provide “unsecured loans” and other modalities such as “student financing” among others. The money released serves any purpose, it is usually to pay other more expensive debts.
Peer to Peer P2P Lendingo in Brazil
So far the record is excellent. Biva, the largest provider of peer-to-peer lending, has a track record of successful returns for investors. Following the Biva, we have the Nexoos who are able to swim arm in the credit crisis without losses to the capital of the investors.
How to reduce the risk of P2P investment
The risks to P2P investors can be mitigated by taking a diversified portfolio of funds, that is, by spreading the resources for hundreds of borrowers. So while it is quite possible for a borrower to go through financial difficulties and become defaulter, the chances that the entire portfolio fails with the monthly payments at the same time are infinitely smaller.
Artificial Intelligence in Peer to Peer
The defense of the peer to peer platforms is robust, the Fintechs are developing advanced systems to select investors only contracts with well-established credit risks, and this is what the lenders want, of course there are investors of all kinds and each one invests according to with your profile.
Peer-to-peer platforms register thousands of borrowers and lenders taking hundreds of new deals every day, they use this experience by checking the data reported in the applications against dozens of other credit information to come to a decision. The system is robust and should expand resources to face increasing risks.
How should I invest in collective P2P financing platforms?
The development of the peer-to-peer credit segment is good for investors and good for borrowers, both gain from the collective community. To make sure that the business can be advantageous, simply access the lending platforms between people to know how easy it is to access the funds.
P2P also needs to be compared to other similar alternatives and platforms, since each has its own particular characteristics, rules, and terms.
Any peer-to-peer investment should fit into a portfolio that includes money, private equity and stocks. If you want to start investing or want to borrow money, peer to peer is safe and has proven to be an excellent choice for both interests.