Prefer Peer to Peer Borrowing Ignoring Baseless P2P Myths
The importance and the demand of Peer-to Peer lending has increased in the last few years because of the great advantages it provides to the borrowers in congruence to the other lenders in the domestic market. There are some myths prevailing in the market spread by rumor spreading sources. All the myths are totally baseless and no borrower should value them.
Today, Peer to Peer borrowing has become one of the best and hassle-free sources to raise business loan. Every entrepreneur should take its advantage and fulfill his/her need of loan to run business successfully.
Below are some of the P2P myths to ignore:
- Good Credit Score is Mandatory
Credit score is a part of the eligibility criterion for a business loan but a low credit score cannot be the cause of your business loan application rejection at P2P. Your business loan application will certainly be given due consideration even though your credit score is not perfect. Other parameters will act as supporting tool helping in the sanctioning of loan for business at P2P platform.
- Only Salaried can Apply
It is absolutely false. Along with a salaried person, even small businessmen, self-employed, and resident of the country can take the benefit of P2P loans. In the case of non-salaried person, the eligibility criterion differs and ITR would be required. Many SMEs and MSMEs have availed P2P business loans to fulfill their business operation need of fund.
- Business Loan at P2P are Comparatively Costlier
This myth is more prevalent which is incorrect. On the other hand, the fact is that P2P platforms do not spend more in the big infrastructure and operational team because of the less need of infra and staffs. This low expense makes Peer-to- Peer loans cheaper, easy, and speedy. On the basis of your strong financial history, you can avail the advantage of low rate of interest and the required tenure.
- P2P Business Loans are for Small Amount Only
P2P platforms is serving as one of the preferred source for small businesses as it has the cap of INR 10 lakhs and the maximum tenure is 3 years. Today, Peer to Peer is fulfilling the need of Credit for SMEs which was not facilitated earlier. An applicant can easily go for instant Peer to Peer lending benefit and avail business loan from minimum INR 15000 up to INR 10, 00,000.
This myth is also false and hundreds of the small businesses are taking the limitless advantage of business loan through P2P lending platforms.
Conclusion:
Myths generally spread through the different sources which includes internet, ignorant folk, mouth to mouth. The good idea is not to believe these myths and take the advantage of instant Peer to Peer lending platforms.