Malaysia Investment Fund For Small Businesses

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Fundaztic
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Things You Should Know About P2P Or Peer To Peer
Lending
Peer to peer lending is a process of financing
debt in which individuals are allowed to borrow
money as well as lend money without the support
of any official institution acting as an
intermediary. In this process the middle man is
removed. The peer to peer industry has grown
simultaneously.
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• Types Of P2P Lending

Peer Lending- The borrower lends money from the
lender and has to pay the lender in fixed
interests. Crowd-Investing- The lender lends
money for a small part of the borrower. This
crowd investing is for mainly start ups and
business purposes. Crowd-Sourcing- The lender
lends money but he/she doesnt hope of getting
back the money. It is like a small prize/gift.
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Reasons Why Borrowers Win
The borrowers are benefited in many ways like
funding speed, higher funding rates, interest
rates are reasonable etc.
Easy Application- The process is very people
can just have to fill some personal information
in an online application and the approval is done
within minutes. Funding Speed- Second is the
speed of funding. It usually takes 2 to 3 weeks
for funding. Many people get small loans filled
in few days and in a week they are funded.
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Reasonable Interest Rates- the third is they
provide bank like reasonable interest rates. The
borrowers who get approved are usually offered
various payback timelines ranging from one to
five years. Depending on the term the interest
rate is adjusted down or up. The P2p Lending
Malaysia provides very reasonable interest rates.
Funding Rates Are Higher- the funding amounts
in the peer to peer model have risen over time
and are substantially increasing. Funding on the
higher end can provide funding for a meaningful
purchase or project.
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Reasons Why Lenders Win
Not only borrowers but also lenders get
benefited. There is Funding Societies Malaysia
that gets benefited in p2p lending. Risk
Spreading- the majority of loans are filled in
smaller increments in p2p lending. Lenders
Choose- the borrowers are categorized by the p2p
lenders for the lenders in their network with
proper identity verification. The borrowers are
provided with interest rates and associated terms
with the risks related to the term, credit score
and many other factors related to
funding. Returns Are High- the average return in
todays market is around 10 which very
attractive in todays market.
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Characteristics Of P2p Lending

• They run as profit organizations
• No prior relationship needed between borrower and
  lender.
• Transactions take place online
• Loans are generally protected by the government
  due to the freshness of this scheme
• Lenders can choose whom to lend money.

In p2p lending the investments are diversified
because of micro investment thus offers less risk
for lenders. In this model the lenders as well as
the investors are in complete control about whom
they fund to. The process is very quick as
everything happens online. The idea is gaining
popularity significantly as mind-sets of people
are changing about online payments.
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