Just a few years ago, we only knew the classic bank and non-bank loans, or special types of special-purpose loans, such as mortgages, car loans, and so on. Denotes as P2P loans – where loans, people borrow each other.
The acronym P2P comes from English and is derived from the words person to person (or peer to peer) lending. But it is not a simple borrowing among strangers, where you would take unnecessary risk, whether as a person who lends money or vice versa as a lender. P2P loans are provided through a special internet platform, where both the borrowers and investors register. Part of the registration is also filling in a lot of information, so those who use this platform know what they are going to and thanks to the sophisticated system the risk is absolutely minimal.
For whom are P2P loans beneficial?
There are a number of examples for whom P2P loans are a very convenient alternative to ordinary, standard loans. Compared to bank loans, P2P loans offer lower interest rates and the client can save a very interesting amount. For those who want to invest money, they are a great new way to value your money and gain an interesting experience. In addition, P2P loans are also suitable for those who can afford to invest a minimum of money – the minimum amounts are very low, if you want, just a few hundred
P2P loans as an option to profitably borrow money
P2P loans are a great way to get credit on better terms than a bank. If you meet demanding banking requirements, but it seems to you that the bank charges too much interest, try signing up with some of the P2P loan companies and maybe you’ll be pleasantly surprised. You can also borrow higher amounts (up to hundreds of thousands), under very favorable conditions.
P2P loans as an interesting investment opportunity
P2P loans are particularly interesting for retail investors who would like to appreciate their money, and in this way they can help many people. The investor can choose for which loan to give his money and can choose the interest himself. Moreover, everything is very easy, intuitive and lending takes place via the Internet interface without having to go anywhere. Some platforms can be invested from as little as CZK 200.
P2P loans that can be used to refinance
Some P2P borrowing companies now also offer the opportunity to use this platform to refinance existing loans. These include, for example, Heposei, where it is possible to transfer both the current loan and consolidation, or to merge multiple loans into one.
Who can get such a loan?
In general, P2P loans are more stringent than, for example, fast non-bank loans. Mostly it is necessary to have provable income, the applicant should also not be in the execution and, of course, even in insolvency. The registry entry may or may not be an obstacle, depending on the context and other information. However, every company that mediates these loans has a different set of conditions. What they all have in common, however, is the minimum age of 18, as with classic loans.
Leading providers of P2P loans in the Czech Republic
Probably the best known website with P2P loans is Heposei, other large platforms in this category. The most recent projects worth mentioning include the Yellow Melon. In addition to this, many others are also active on the Czech market, and this type of credit has become increasingly popular lately.