P2P Lending : People helping people

At i-lend, lending takes on a new perspective. It involves people, not financial institutions. I-lend is an Internet based P2P Lending company. As with all P2P financial businesses, it involves the lenders and the borrowers. Before i-lend’s formation, the founders had to do intense research into the complex regulatory side of the world of lending. They had to become familiar with the laws that governed the banking sector, as well as all state laws.

During an interview with P2P-Banking they stated:

Typically most of our borrowers have recourse to either personal loans from banks or resort to credit cards usage. These personal loans are available only to a selected segment working in some top 500 companies. Most people who are not a part of the above mentioned segment have to resort to private borrowings on which interest rates are very high more like 21% to 28%. Moreover a vast majority of urban India who otherwise are gainfully employed are denied credit for various reasons. Personal loans are also very expensive in India attracting rates between 16% — 24% by banks.

When looking at these numbers, it becomes apparent that another solution had to be available. The model also had to be set up in such a way that it attracted lenders as well as borrowers. Some of the advantages for the lenders are a higher return compared to the standard savings account. Monthly returns are another attractive feature.

On the borrower’s side, it is the lower interest rates that start about 12% versus the 16% — 24% as mentioned above. The loan amounts are also flexible without any prepayment charges.

One feature that may seem most unique to anyone unfamiliar with the P2P form of lending is how the procedure takes place.

Users are first required to register as borrowers or lenders on the website. When their details are verified successfully, lenders and borrowers can post their requirements through their individual listings. These listings primarily include information such as loan amount, purpose of loan, expected interest rate, personal profile, employment details, financial stability etc. for borrowers and lending amount, expected returns, pre-requisite for offering loans etc. for lenders.

This personal interaction between the borrowers and lenders is the means that makes it possible to offer cheaper rates. There is security for both sides as a thorough check is done, no matter which side you are on. Also, the money can be given out in increments instead of a lump sum. As mentioned above, it is a totally transparent transaction and the two parties approach each other as they prefer. Details are then carried out through the manner chosen.

I-lend has a very in-depth question and answer section available for those wishing to learn more, in their FAQ. There is also a chat feature available during regular business hours. They have sections for both the lenders and the borrowers on their site for steps and tips to make the financial process a safe and successful one.

Contact us to learn more about investing in the hopes and dreams of others or how to make your dreams come true.