Social lending marketplaces operate on the eBay model, where lenders and borrowers work out loans without having to deal with a third party. Online platforms allow borrowers to post loan requests, listing the amount, interest rate, and length of the loans. After examining hundreds of requests, lenders place bids for the loan listings that meet their investment criteria.
Online profiles of borrowers can be used to show their financial strengths and responsibilities, as well as their monthly income and expenses. This can help you to choose where to invest. Many sites assess the creditworthiness of borrowers through credit scores and other parameters, such as their stability scores, affordability scores, DTI ratios, and their financial stability. Social lending sites offer loans up to PS25000 over a period of one to five years.
Most social lending sites require you to register quickly and easily. As long as you meet all the requirements, you can apply. You can apply for a loan to consolidate debt, travel, home repairs, mortgage, or business.
A clear explanation of your reasons for wanting the loan, how you plan to repay it, and a few indicators about your reliability and stability as a borrower will go a long way in getting your loan funded. You can also choose to keep your financial and personal information private by setting your privacy settings.