Have you ever thought of borrowing money to someone & getting your money returned with interest? Or if you are a business owner, have you ever face any difficulty getting your business loan approved? This situation may relate to some of us in our daily life. What if I tell you that there is solution for the above questions? And Yes…. The solution is Peer-to-Peer Lending or P2P Lending.
What is P2P Lending?
P2P Lending is a Digital Platform where it matches both Investors & Borrowers. This platform will help Borrowers get the loan they are requesting & help the Investors to profit from their borrowing. Since it is a Digital Platform, they are able to lower the cost for Borrowers & increase the profit for Investors.
Depending on each individual Platform, they will provide the Risk Rating for Investors reference. The higher the risk, the higher the return for Investors.
How Can Investors Benefit From P2P Lending Platform?
P2P Lending is a great Investment alternative if you are looking to Diversify your Investment Portfolio. Below is some of the Pros & Cons of P2P Lending Platform :
1. Higher Return than Fixed Deposits
P2P Lending have higher overall return compare to Fixed Deposits but they have different risk level. Fixed Deposits have lower risk compare to P2P Lending.
2. Easy Tracking & Investment via Mobile App / Website
You can track your Investment anytime you want via Website or Mobile App. Usually the Digital Platform will alert you via email or notification on their latest Investment opportunity.
3. Low Starting Cost
Your starting cost can be as low as RM50. It is definitely an affordable Investment options for many investors.
4. Auto Invest
Some of the Digital Platform are offering Auto Invest Service. All you have to do is setup your account with the fixed investment amount & you are good to go.
1. Risk Of Losing Money
There are Risk of Losing your Money if the Borrowers didn’t pay their loan.
2. Borrowers Might Have Low Credit Score
Borrowers might have Low Credit Score & they are unable to get loan from the bank. This might lead Borrowers to source other alternative for their loan. But worry less, usually the Platform will do their filtration & research before approving the Borrowers to be on their Platform.
3. Too Many Investors
P2P Lending might be new in Malaysia but their response is really really good. Some of their Investment Opportunity will be fully funded within 60 seconds.
How Can Borrowers Benefit From P2P Lending Platform?
There are many SME Companies that are having some challenges getting their loan approved via Bank. P2P Lending Platform can be a good alternative for them. Borrowers dont need to provide any Collateral to be approved & listed in the P2P Platform. Borrowing via P2P Lending Platform will not affect the Borrowers Credit Score. Best part of all, Borrowers will remain anonymous to Investors.
Below Are The Full List of P2P Lending Platform Approved By Securities Commission of Malaysia :
1. B2B Finpal Sdn. Bhd.
Platform : b2bfinpal.com
2. Ethis Kapital Sdn. Bhd. – Shariah-Compliant
Platform : nuskapital.com
3. FBM Crowdtech Sdn. Bhd.
Platform : alixco.com
4. Modalku Ventures Sdn. Bhd.
Platform : fundingsocieties.com.my
5. Peoplender Sdn. Bhd.
Platform : fundaztic.com
6. QuicKash Malaysia Sdn. Bhd.
Platform : quickash.com
Dont worry Grasshoppa. I can share with you 2 Platform that Im using currently. Both Platform are the Leading P2P Lending Platform in Malaysia.
1. Funding Societies
Minimum Deposit : RM1000
Subsequent Deposit : RM100
Minimum Investment : RM100
Auto Invest : Yes
Mobile App : Yes
Minimum Deposit : RM50
Subsequent Deposit : RM50
Minimum Investment : RM50
Auto Invest : Yes (Up to 5 times for each setup)
Mobile App : Yes
Use the PROMO LINK above to enjoy some of the benefits like RM50 BONUS when you Sign Up as Members. *Terms & Conditions Apply.
P2P Lending can be part of your Investment Portfolio if you are looking to Diversify it. As a Investor, P2P Lending Platform can help you to earn some passive income & you dont need much skill to Invest in P2P Lending. For Borrower, you are able to get the Loan that you need to grow your business. It is definitely a Win-Win Situation for both Investors & Borrowers.