Responsible Lending Principles

A lender's prerogative

An online peer-to-peer lending platform gives umpteen opportunities to a lender for making smart investment decisions that promise great returns within a short span of time. Over the period of time P2P lending has become the chosen platform for low cost short tem loans. With easy procurement and lower interest rates, short term loans can help borrowers with immediate requirements like debt consolidation, family event, marriage loan, auto loan etc.

As borrowers seek low interest personal loans, lenders too look to reap the maximum profit quickly. Short term lending can be one of the best ways to earn fast money without much hassle. However, it is highly imperative for a lender to establish the personal loan eligibility before agreeing to lend the money. A thorough background check of the borrower is a necessity to prevent any fraudulent activities in the future. 

Better safe than sorry

While the option of earning quick money in a short span of time sounds lucrative, there can be certain drawbacks attached to it. Prior to lending, lenders need to weigh down the pros and cons and then take a call.  There is always a thin possibility of fraud, which might cost you the principal amount as well!  

It is always best to rule out issues, before lending, for it can severely hit your financial portfolio. In order to make smart investment decisions, lenders need to practice responsible lending. The financial market is always in a flux and to be able to invest and earn returns, will need accurate understanding of numbers. P2P lending is all about unsecured loans without any guarantee of return and hence it is advisable to lend money only when you are 100% sure about parting with the amount. 

Tread the safe path!

When it comes to online peer-to-peer lending, it is best to take the safest path. Assessing the eligibility of the borrower is of utmost importance to ensure that lenders are not cheated of their money. Prior to lending, you need to evaluate the borrowers in terms of requirement for the loan and their capability to repay the amount within the stipulated time frame. Responsible lending is the key for all lenders to make quick money.

Here are some tips for responsible borrowing:

  • Understand the lender agreement
    A lender agreement lays down the terms and conditions levied to the lending process. It is important to carefully read and understand the clauses, so that you are clear about the terms and can make the right decision. 
  • Check financial status of borrowers
    Before deciding to lend, you must do a thorough financial check of the borrower to rule out the possibility of a history of fraudulent activities. A creditworthy borrower is always the best choice, for it establishes his/her ability to repay the money. This would enable you to make a safe choice and ensure that you don’t lose your money.
  • Get extra information
    In case you have queries, it’s always best to get it clarified by the borrower. It is always suggested that details like job profile, work experience are valuable in order to gauge the creditworthiness/authenticity of the borrower. 

Responsible lending comes with an objective analysis of one’s own capability to lend and also the ability of the borrower to repay. 


When it comes to lending, lenders must rely on responsible lending. Short term loans with great interest can be a good way of making quick money, but there are hidden issues in it. It is highly imperative that lenders understand the lending agreement carefully and evaluate their own ability to lend. A leading P2P lending platform, i-lend ensures that lenders are given a complete chance to evaluate the profiles of the borrowers before lending. Allowing only creditworthy borrowers to register with them, i-lend establishes a strong process for responsible lending.