Borrowing money to meet financial needs is no new concept. From earlier days people in need of money have been known to borrow from those who have excess to spare. Then came the interest, where the lender started gaining by lending his money to the one who needs.
Today as technology develops, people become more aware of other financial requirements and become more open to borrowing money to fulfill their needs, lenders are on the rise. The lenders do not lend just to friends and family anymore. It has become a lucrative business in itself.
Peer to peer platform for borrowing and lending money is where one individual borrows from another individual rather than a bank or a financial institution. This is generally done over the internet rather than across the counter like in banks.
The individuals who are ready to lend money come together and form a group. A person in need of money will apply for a loan in this group, along with details of his requirements. The ones who are interested can offer. The interest rate for the sum borrowed is however decided by the group. Based on their previously decided rates and brackets, the interest is offered to the applicant. You can find some examples on https://epikavippi.fi/fixura/.
Is This A Good Option?
When three are a number of certified banks and institutions, is it advisable to borrow from such a platform?
Many borrowers are open to this mode of borrowing as they do not have to wait for a long period of time like with banks. There are no rigorous checking processes or umpteen numbers of documents to submit to get the loan approved. Also, getting things done online saves a lot of money for both parties.
Here, if one lender is not ready, there are others to lend money. With other institutions, one will have to go from door to door asking for money. The varied interest rates also help people borrow money for different amounts and periods without feeling they are charged very high.