Peer-to-peer (P2P) lending has emerged as a popular avenue for portfolio diversification, connecting borrowers directly with lenders through online platforms. This innovative model bypasses traditional financial intermediaries, offering unique advantages to both parties involved. For lenders, P2P lending provides a range of benefits that make it an attractive option.
1. Full Transparency
Transparency is a cornerstone of Per Annum's platform. Every stage of the lending process, from borrower profiles to loan disbursement and repayment, is clearly visible. Lenders can view detailed information on the borrowers' creditworthiness, including their credit scores, transaction history, and repayment patterns. This level of transparency ensures that both parties are fully aware of the terms and risks involved, fostering a sense of trust. Additionally, the platform provides regular updates, allowing users to track performance in real time, ensuring no hidden surprises.
2. Inflation-Beating Returns
Per Annum offers estimated returns that have the potential to outperform inflation, which is crucial in today’s economic environment. With rising inflation eroding the value of traditional savings, P2P lending provides an alternative that can help users maintain and grow their purchasing power. By offering returns that aren’t directly linked to market volatility, the platform provides a relatively stable avenue to preserve wealth. This is particularly advantageous for those seeking to protect their money from the diminishing effects of inflation while also pursuing better financial outcomes.
3. Portfolio Diversification with a Non-Market Linked Asset
Diversification is vital for building a balanced financial strategy, and Per Annum provides an option that is independent of traditional market-linked instruments like stocks and mutual funds. By incorporating P2P lending into their financial strategy, users can reduce their exposure to market risks while tapping into a different asset class. For individuals seeking stability alongside their market-based holdings, Per Annum offers a non-market linked avenue to achieve that balance.
4. Control Over Borrowers
Per Annum allows users to exercise significant control over their lending choices. Lenders can handpick borrowers based on criteria such as credit score, business verification, and repayment history. This empowers them to lend selectively, ensuring they are comfortable with the risk profiles of those they choose to support. This control extends to the loan terms as well, such as tenure and repayment frequency. By giving lenders the ability to personalise their lending strategies, Per Annum provides an enhanced sense of security and tailored decision-making.
5. RBI Regulated Asset Class
Per Annum operates within the strict regulatory framework established by the Reserve Bank of India (RBI), providing an additional layer of safety and credibility. The RBI's guidelines ensure that P2P lending platforms adhere to certain operational standards, including risk mitigation practices, data protection, and transparent communication between lenders and borrowers. This regulation safeguards users' interests and enhances the legitimacy of the P2P lending space. By being fully compliant with these regulations, Per Annum assures users that they are participating in a legitimate and secure financial system that prioritises consumer protection and stability.