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P2P lending India: TOP 3 platforms

P2P lending India. Peer to peer lending (or P2P lending) is one of the most innovative financial products of recent times. It enables creditworthy borrowers lower their cost of loans and individual lenders/investors to lend directly to their peers and community thereby earning higher returns.

P2P lending India. TOP 3 platforms

LenDenClub is one of the fastest growing peer to peer (P2P) lending platforms in India. It connects investors or lenders looking for high returns with creditworthy borrowers looking for short term personal loans.

i2iFunding (RNVP Technology Pvt Ltd.) is a Reserve Bank of India (RBI) registered Non-Banking Financial Company – Peer to Peer Lending Platform (NBFC-P2P).

Faircent.com essentially do is provide a virtual market place where borrowers and lenders can interact directly, without having to go through the traditional financial intermediaries like banks, who have become such behemoths in today’s time that they dictate all terms and conditions for both borrowers and lenders. Faircent is India’s first peer-to-peer (P2P) lending platform to receive a Certificate of Registration (CoR) as an NBFC-P2P from the Reserve Bank of India (RBI).

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Lendsecured review

Lendsecured review: LendSecured is a Real Estate Crowdlending platform providing only real estate backed investment opportunities.

The core pillar and philosophy for Lendsecured is to minimize the risks. LendSecured feels responsible for their clients and believes that if investors have trusted with their funds, then it is their duty to offer the safest possible investment opportunities. In order to minize the risks, Lendsecured publish investment projects with low LTV (Loan to Value ratio). The lower, the ratio, the lower the risk.

It all goes back to 2019, when two experienced professionals from the secured lending sector Ņikita Gončars and Edgars Tālums became aware that there is a niche in the crowdlending market, as none of the existing market players offered low-LTV investment deals.

The secured lending business under the leadership of Ņikita and Edgars had bought its strategic investors a return of over 10%. Now through the platform they are ready to offer investment opportunities for public.

LendSecured benefits from debt collection license (Loan MGMT Ltd.). Besides that, LendSecured is the member of European Crowdfunding Network since 2020.

Key metrics

Registered investors: <500

Advertised returns: Up to 14%

Regulated: No

Secondary market: Yes

Auto Invest: No

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Moncera, a P2P marketplace from Estonia

Moncera is a peer-to-peer marketplace, where Investors can build a regular flow of passive income by investing in consumer loans from non-banking lending institutions.

How does Moncera work?

Loan Originators list loans issued to the borrowers on the marketplace. Investors are free to choose between different loans and volume they want to finance. Different Loan Types with various maturities and returns allow Investors to create their investment portfolio according to their strategy. You can either invest manually by browsing through the market or you can set up an Auto-invest portfolio investing according to your chosen criteria.

Who is eligible to invest with Moncera?

To become an investor you need to be at least 18 years old, be a resident of a European Economic Area (EEA) country and have a bank account in your name opened in an EEA country. An individual is recognized as a resident if he or she is a citizen, has a residence permit or is registered as a tax payer in an EEA country.

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Meet Nordstreet, a leading crowdfunding platform from Lithuania

Nordstreet is a crowdfunding platform that radically changes real estate investment opportunities. From now on, RE investments are no longer reserved for venture capital firms or very rich entities: everyone has an opportunity to choose an RE project and invest an amount of their choice (from EUR 100). Only thoroughly verified and analysed real estate projects are presented on the platform. Moreover, NordStreet gives investors all information on the projects, their risks, guarantees, etc.

For real estate developers, Nordstreet presents a reliable opportunity to secure investment for their real estate project by means of crowdfunding. The requested investment is unlimited (given the LTV indicator does not exceed 75%), and the project may run for up to 36 months. One of the key aspects of a business loan for real estate developers is that during the project, they pay only interest, and are expected to repay the full amount only at maturity, i.e. after the successful completion of project development.

 UAB Nordstreet is included in the Public List of Operators of Concentrated Financing Platforms administered by the Bank of Lithuania. Bank of Lithuania Consumer and Financial Market Participant Dispute Resolution Procedure.

Why invest via ,,NordStreet”?

If you are looking to invest (even if it is only a small amount), the ,,NordStreet”  platform offers one of the most promising investment areas – real estate. Main reasons to invest via ,,NordStreet” :

  • Here you will find only thoroughly vetted projects assessed by our RE experts.
  • You can start investing from EUR 100.
  • Borrowers guarantee repayment of the project investments by pledge of property, which makes investment risk lower than normal.
  • The average return on investment can be as high as 11 percent.

Nordstreet posts: P2P lending , Loans , Advantages of P2P lending , How to earn money from P2P lending , Business loans , Investing Guide , P2P investing How to save money for investing, P2P loans, Investment types,

Business loans for construction business , How to invest in crowdfunding

How to receive a loan for a whosale business , How to earn money

Business loan for restaurants and hotels Business loan for grocery stores

How to generate passive income How to get a loan for logistic companies

How to get a loan for odontological practices How to get a loan for a cleaning companies

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INTERVIEW WITH FLENDER CEO, KRISTJAN KOIK

How would you describe the Flender platform?

Flender was established in 2016 to help Irish businesses gain access to the funds they need to succeed. Our goal was to make applying for finance simple and straightforward, and to provide funds to Irish SMEs as quickly as possible.

Through our digital platform, we can review, process and fund business loans in as little as 24 hours. Our dedication to digital lending, and our attention to the needs of our lenders and borrowers has made Flender Ireland’s fastest growing digital lender.

Flender CEO & Founder, Kristjan Koik

What are the three main advantages for investors?

  • Consistent solid returns: Flender offers term loans of up to €300,000 to well established, cash generating Irish SMEs. With rates ranging from 6.25% for A+ grade loans to 13.7% for D grade loans, investors can expect excellent returns while balancing their loan portfolios.
  • Rigorous credit procedures: Flender has a rigorous credit process and focuses on credit quality. The credit team has been recruited from Ireland’s leading banks and the Head of Credit has more than 12 years business underwriting experience. This focus on quality means that loans are carefully graded and we are confident in the SMEs that we lend to.
  • Best in market performance: Flender has a market leading default rate of just 1.2%.

Is the technical platform self-developed or using a white label solution?

The Flender IP and platform were developed and built from scratch by an in-house development team. The Flender platform was built to match lenders with borrowers and provide the fastest access to capital possible.

What ROI can investors expect?


With reinvestment, average investors can expect returns of just over 10%

How reliable is the credit rating/credit history data available?


Flender has a rigorous credit process that focuses on credit quality. The credit team has been recruited from Ireland’s leading banks and the Head of Credit has more than 12 years business underwriting experience. This focus on quality means that loans are carefully graded and the average default rate is 1.2%.

Are you open to international investors?


Yes! Flender’s investors are truly international with lenders from all across Europe and around the World.

Is your platform regulated?


There is currently no regulatory body for digital, alternative or P2P lenders in Ireland. However, Flender will welcome and participate in the regulatory process when it is introduced. Flender’s parent company NKK Finance is regulated by the FCA in the UK.

How do you see Flender in 5 years?


I believe that Flender is uniquely positioned to become the leading digital lender in Ireland and a major player across Europe.

Right now, the opportunities for digital business lenders are very exciting in Ireland. In the Euro area, digital and non-bank lenders control more than 50% of the market. In Ireland, less than 10% of SME lending is controlled by digital and non-bank lenders – and the market is worth almost €4billion. So, our goal is to take advantage of these opportunities, bring Ireland in line with the rest of the euro area, and lead the Irish market by offering innovative products, great rates and excellent service for our lenders and our borrowers.

** EVERY NEWCOMER GETS 5% CASHBACK ON INVESTMENTS DURING THE FIRST 30 DAYS. TRY NOW!

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What is peer to peer lending?

ow Safe is Peer to Peer lending?

Peer-to-Peer lending is a new emerging solution for investors. In its simplest form, you as an investor give money to one or more individuals or businesses, who later pay back the money with interest at the end of the term.

But is peer to peer lending safe?

Keeping in mind that you are supposed to deliver money to people or businesses that you’re not sure of their credibility!

p2p consulation with client

That gives us a reason to briefly look at the benefits and negatives of P2P lending, and compare this type of lending with the traditional bank system. To have a better understanding of P2P lending we’ve summarized it as follows:

  • Account-Based products – you spread your money across loans to various individuals or businesses.
  • Self-select investments – you choose a specific borrower to lend your money.
  • Innovative Finance ISA (IFISA) – your peer-to-peer loans are wrapped in an ISA.
  • Corporate bonds – you lend money to big, listed companies.

Now let’s dive into the world of P2P lending.

P2P Lending Pros

Easier approval

One of the major advantages of P2P lending is the easier loan approval process than that of a traditional bank. Most of the time, you’ll have access to an extensive network of loan providers to work with.

Despite the fact that some of them might be suspicious of working with individuals who have awful credit, there will always be many willing to make trusted deals. This is a huge benefit for people looking for the money.

Lower fees

coins and money

In P2P lending there are fewer and smaller fees to cover (sometimes none).

A bank will charge you loan application fees, processing fee, insurance fee, and other small fees that they only know of. When you work with another person, in most cases you will not have to cover such fees that all together stand for a significant sum.

Time saving

Using P2P platforms gives you quick access to the money you need. With a bank that may take weeks or even more for you to get the amount, you are looking for.

With P2P lending, you might even able to secure a deal with the lender and have the money in your account all in one day.

This is an important benefit for both sides of P2P lending!

Investing in a business of your choice

Contrary to account-based loans, P2P platforms allow you to compare and select from several businesses or projects to invest in. Because of that, you are able to choose a good investment opportunity where the returns outweigh the risks.

Obviously, this is what you as an investor are looking.

Excellent potential returns

Peer-to-Peer lending offers great potential returns with some platforms giving annual interest earnings in excess of 9% and in some instances up to 20%. On average, banks savings account give 6%, so it only makes sense going all in on P2P.

Tax efficiency

Under the new Innovative Finance ISA (IFISA), UK investors enjoy tax-free interests. Enjoying tax-free investment returns will never happen in a bank environment although they usually don’t charge too much for this.

Relatively low risks and high reputation

Many large P2P lending platforms such as Zopa, RateSetter and Funding Circle claim that none of their investors have ever lost the money they invested. In fact, some platforms, like DoFinance for example, usually cover the costs of failed investments if such situation would occur.

This excellent reputation makes them trustworthy to existing and new investors.

P2P Lending Cons

Early exit attracts a fee

Some P2P platforms don’t allow early exit.

Those that do, usually charge some fee for you to withdrawal from the investment. In some cases, you can only exit the platform if another investor is found to take over your share of the credit.

So it’s important to make sure to invest only when you know that you will not seek an early exit during the loan duration.

High risk on some platforms

The risk involved in P2P lending can be looked at from both sides. For example, there’s always a risk of investing in small companies and startups which have no proven record of success.

There’s a high likelihood that you could experience some failure if you invest in such ventures using platforms, that do not cover loses.

Keep in mind that the potential high return is usually offered due to the fact that you’re investing in small businesses with very high risks.

finance chart graph

No FSCS Guarantee

Cash ISAs (Individual Savings Accounts) are covered by the FSCS (Financial Services Compensation Scheme), meaning they are underwritten by the UK Government up to a value of £75,000.

However, P2P lending platforms are not protected by the FSCS, so they don’t benefit from that guarantee.

Bank investments Pros

Insurance

One of the safest places where you can invest your money is the traditional bank. Mainly because most banks have insurance that covers the money held in various accounts.

Banks are also under stricter regulations from the government giving you more confidence that the invested money will only be used appropriately.

Certainty

Investing in a bank account allows you to determine precisely the amount of cash you’ll have at a particular date in the future. This is because bank accounts avoid market changes that affect other investments such as stocks and they usually pay fixed interest rates.

When you need a specific amount of money within a given time period, this certainty becomes a high advantage.

Bank Investments Cons

Low returns

Lower returns are a major disadvantage of bank savings accounts when compared to P2P lending. Factor in taxes on interest and your money might fail to keep up with the gradual increase in costs of goods and services.

Let’s say a bank gives you a 4% annual interest rate on your savings. You pay a third of that in taxes while the inflation is somewhere around 3% a year. This means that your money’s purchasing power crumbles, and suddenly you’d have been better of holding onto your money or investing somewhere else.

money on atm

Fees! Fees! And more Fees!

We are sure you’ve heard of this: account maintenance fee, ATM fee, over the counter withdrawal fee and more.

It’s absolutely insane just how much fees banks impose on your money. Some of these fees can even exceed the interest rate on your savings account (if you do the math right for a whole year or so).

In other cases, a bank can lower your interest rate or even impose more charges if you fail to meet certain requirements. This route can be tough and you must always pay attention to the terms and conditions regarding bank products.

So is Peer to Peer lending safe?

Peer to Peer lending is as safe as it can be if you use trusted platforms. If you are new to these platforms, we advise you start conservatively and spread your investments. In other words, don’t lend all your money to one borrower.

Be smart; it only makes sense to spread the risk over several borrowers. According to experts, this is the best way to protect your money from one catastrophic default.

calculator

P2P sites such as Proper and Lending Club even allow you to invest just a portion of a borrower’s request, and it’s unlikely that all the borrowers will default.

As a matter of fact, you can take the lowest-risk route in Peer-to-Peer lending by working with expert P2P lending companies. Such companies have all or at least the following risk-reducing methods:

  • Lend money to only low-risk borrowers.
  • Allow you to spread your investments across several borrowers.
  • Insurance cover for your losses if a borrower is unable to pay due to unexpected circumstances.
  • A bad-debt provision fund – a pool of money set aside to pay you and other lenders if a borrower defaults a loan.
  • Securing your advances against borrowers’ assets, meaning the Peer-to-Peer lending company could possibly sell a property and pay you back on the off chance that one of your loanees can’t pay.

Another reason that gives great assurance is that most P2P companies have enough relevant experience from traditional banking, including lending processes and risk analysis.

P2P lenders also engage in underwriting and determining the creditworthiness of all borrowers. So by the time you give your money to a borrower, you can rest assured that your money is going to the right person or company that will not cause a misfortune.

Should you invest in P2P platforms?

Absolutely yes!

There are major benefits you can reap from in P2P lending. Interest rates like you’ll find nowhere else, no overwhelming fees, less time-consuming, chaos borrower you trust, and of course minimal taxation.

Clearly, the advantages of P2P lending outweigh the cons as well as all the benefits that banks offer. Whenever you put your money in the bank, you can agree with us that it’s the interest rate that leads you there. But finding a worthy interest rate is not that easy at all.

P2P platforms, however, have endless opportunities and it seems like this is the best investment route these days. It’s just a matter of years before traditional banks find a way into their own P2P way of banking because they’re starting to lose to P2P lending platforms.

Make sure to try out peer to peer lending before bigger organizations impose different regulations and fees on what is now a trustworthy investment method.

Final Word

Many have asked how safe is peer to peer lending and looking at all of the factors, we are sure to say, it’s absolutely safe if you use trusted platforms and analyze the risks yourself.

The trick is simple, you must first educate yourself and then stick to safe lending strategies.

Do you still have some doubts about P2P lending?

Let us know what holds you back and we will be happy to answer your questions