The loan industry is a multi-billion dollar industry where people borrow from financial institutions, banks, and other private lenders. In recent years, the lending industry has gone through an evolution and has given way to social lending as a new and promising mode of lending.
If you are wondering whether the P2P loans offered in social lending sites like crowdfunding-platforms are feasible or not then the answer is most likely yes. There is not much difference as far as the P2P loans from these lending hubs and from the bank.
The main purpose of social lending hubs is to offer online loan with the best interest rates and make customers feel like they were borrowed from a friend or community. This peer to peer lending increasingly seen in a new light and is being considered as part of the lending community.
The creation of a new asset class-
The lender in any peer to peer lending hubs can now take advantage of a new asset class, which they can add to their portfolios because they do not fall under the investment or even a savings account.
Active community participation-
One important point is that this type of loan the borrower hub of make feel as if they are following from an actual person and not a faceless organization or institution. Thus it helps in developing a strong community feeling.