5 Differences Between Bank Lending and Peer to Peer Lending

Application for a loan in a bank is a tedious process. Banks usually have stringent rules for lending to a borrower. Most of the time they treat borrowers as a number on their credit report.

This rigidness has resulted in huge set of borrowers being neglected by banks. Some of these borrowers are provided financing by NBFCs but still a large number of borrowers are left on their own. A new lending methodology has come into forefront in recent times. Peer to peer lending is quite different from normal banking. These platforms are quite flexible compared to banks and don’t treat a borrower just as a number on their credit report. The article on LoanKuber.com made me inform about differences between peer to peer lending and banking. This article on http://www.loankuber.com/content/peer-to-peer-lending/differences-between-bank-lending-and-p2p-lending/  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

8 Investment tips for a first time investor

Investing for the first time has its own charm and it is a feeling that every investor goes though. Investing for the first time is a crucial decision that you are taking with your hard earned money. It is very important to take this decision with uttermost care.

There are plenty of new options available to first time investors to invest their money intelligently. It is advisable to invest in through SIP mode in balanced funds and tax saving funds. First time investors should avoid the trap of day trading and advice of relatives. Investment for a longer tenure is advisable for first time investors to take advantage of “magic of compounding” rule. The article on Loankuber made me inform about investment strategies for first time investors. This article on http://www.loankuber.com/content/investments/8-investment-tips-for-a-first-ti proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

Savings Account and Current Account

There are many bank account types which are offered in India by banks. To concise it, mainly 4 types of accounts are maintained- current account, savings account, recurring deposits and fixed deposits. And the most commonly used in all the above 4 is savings account.

Savings account are maintained by the individuals to stash their savings in one place and withdraw it whenever required. The reason why the individuals prefer this account is because they offer interest rates (generally 4%) on the amount. And on top of that the banks provide other banking facilities like cheque, withdrawals, etc. Also, there is a tax benefit of up to 10,000 rupees interest earned per year. If an individual earns beyond 10,000 rupees as tax, then they would be charged tax.

On the other hand, current accounts just cannot be used for saving purpose. These are used to facilitate business transactions and is generally owned by companies.The benefit of these accounts are to indulge in multiple transactions. Also the account owner has the facility of overdraft, ie using more amount of money than what is available in the account.

To know more about Savings account and current account, you should go and read an article http://www.loankuber.com/content/investments/savings-account-and-current-account/. This is very informative and also has more articles on investments.

Short term investment plan

Short term investment plans are those investment options which have a maturity period of less than 1 year. They offer a handsome interest rate on a short amount of period.

Some good short term investment options-

1. Fixed deposit investments- Usually these investments have a maturity period of 3-5 years, but nowadays banks have started offering FD schemes for 6 months to 1 year. Return usually is 9%.
2. Liquid funds- These are mutual funds that can be converted into cash very easily. They offer interest rates between 4% to 10%.
3. Peer to peer lending- This is the most lucrative and productive short term investment. They offer a maturity period of 6 months and their interest rates go as high as 24%.
4. Fixed maturity plans- They carry a maturity period of 1 year and the interest rate in usually 9.5%.

There are many more good short term investment options listed on this article http://www.loankuber.com/content/investments/short-term-investment-plan/. This article proved to be very helpful to me as a prospective lender, and I am planning to invest in peer to peer lending.

P2P lending v/s Real estate

Real estate investments have been considered as one of the most popular investment strategy adopted by Indian consumer. It is a common misconception that you can double or triple your money by investing in real estate for few years.

Real estate is going through a bad patch in recent times. In fact in most of the Indian cities, property prices have actually fallen in past three years. Over a period of 10-15 years real estate have offered a return of only 15% to 16% over the years. New age investment options like P2P lending can offer better returns upto 25% over a relatively short period of time. Moreover, you don’t need to put your entire money in one investment class. The article on LoanKuber.com made me inform about advantage of P2P lending over real estate investments. This article on http://www.loankuber.com/content/peer-to-peer-lending/p2p-lending-vs-real-estate-investment/  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

Why borrow through Peer to peer lending?

If you have ever applied to a loan from bank then you must know that how tedious is to get a loan from a bank. Banks usually look for cream among borrowers who have a good income, experience, longevity and good repayment track record.

A customer who is not up to banking standards is usually not provided a loan by a bank. This rigidity in lending banks has created a huge population among borrowers who are not provided loans by banks. Peer to peer lending platforms are new age lenders who just doesn’t only look into past repayment of borrowers but also look into future potential too. They have eased the process of lending with new cutting age technology. The article on LoanKuber.com made me inform about benefits of borrowing from peer to peer lending websites. This article on http://www.loankuber.com/content/peer-to-peer-lending/why-borrow-through-p2p-lending/  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

P2P lending v/s Fixed Deposits

Fixed Deposits have been one of the most popular investment options for us over the years. Fixed deposits in a bank offered a guaranteed rate of return after a certain amount of time. Fixed deposit usually offers a return of 7% to 9% depending upon tenure of investments. These returns look good until you take inflation into account. These returns are lower compared to inflation over the years and in real terms your money has depreciated in value over time.

A new form investment in form P2P lending is gaining force in India. This investment can offer a return on upwards of 18% to 25% with minimal risk. It has advantage of diversification and portfolio creation too. The article on Loankuber made me inform about the advantages of P2P lending over fixed deposits. This article on http://www.loankuber.com/content/peer-to-peer-lending/p2p-lending-vs-fixed-deposits/ proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

P2P lending vs Equities

Investments are one of the most important tools available to beat inflation. Investments come in many shapes and forms including saving account, fixed deposits, PPF, mutual fund, equities etc. Investing in equities has been one of the most important strategies adopted by investors currently. But equities are considered to be a high risk investments compared to others. You need to put in a lot of effort and time to get updated on what is happening in stock market. Even then there is no guarantee to generate returns that would beat inflation.

In recent times a new form of investment has disrupted India’s lending industry i.e. P2P lending. In P2P lending you need to invest quite a less time compared to other forms of investment. This investment also generates returns that are greater than equities in a shorter period of time. The article on LoanKuber.com made me inform about advantage of P2P lending over equities. This article on http://www.loankuber.com/content/peer-to-peer-lending/peer-to-peer-lending-vs-equities/  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

P2P lending vs Equities

Investments are one of the most important tools available to beat inflation. Investments come in many shapes and forms including saving account, fixed deposits, PPF, mutual fund, equities etc. Investing in equities has been one of the most important strategies adopted by investors currently. But equities are considered to be a high risk investments compared to others. You need to put in a lot of effort and time to get updated on what is happening in stock market. Even then there is no guarantee to generate returns that would beat inflation.

In recent times a new form of investment has disrupted India’s lending industry i.e. P2P lending. In P2P lending you need to invest quite a less time compared to other forms of investment. This investment also generates returns that are greater than equities in a shorter period of time. The article on LoanKuber.com made me inform about advantage of P2P lending over equities. This article on http://www.loankuber.com/content/peer-to-peer-lending/peer-to-peer-lending-vs-equities/  proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

Attractions of P2P lending to lenders

P2P lending is showing a path for the lenders to earn huge interest returns in less time. It is being considered as one of the hot investment options by the lenders/investors.

Some equally beneficial reasons why P2P lending is attracting the investors more than any other option-

• Higher yields- It is definitely promising and delivering high returns to the lenders as compared to other fixed investments.
• It is delivering a periodic return to the investor- Every month/period, the investor is getting returns as EMI, unlike options like real estate.
• Selection of the deals- The investor can themselves select who they want to invest in
• No additional charge for the credit check or any other verification of the borrower is taken for the lender.

There are many other advantages that P2P lending is offering to the lenders. I read an article http://www.loankuber.com/content/peer-to-peer-lending/attractions-of-p2p-lending-to-lenders/ which informed me about the above and many more benefits. As a prospective investor, you should definitely give it a read.