Four Top Reasons for the Growing Popularity of P2P Lending Solution
The popularity of blockchain-driven P2P lending platforms is consistently going northward for a couple of years. With a bright option at hand for getting the funds required, many people are relying on P2P crypto lending platforms due to the benefits like instant lending, transparency of operations, no credit check required, and low interest rate.
With the increase in the number of users of P2P crypto lending platforms, businesses are more inclined toward launching their P2P lending platforms to create new revenue streams for themselves. Thus, white label P2P lending software is being considered an ideal option by businesses since it helps them quickly launch their product into the market to gain an essential competitive edge.
Here are the reasons why people are shifting toward P2P crypto lending platforms and why building a platform like this will be a good venture for your business.
- Instant lending
In the times of high-tech financial procedures, people expect money to be sanctioned at the earliest. They are unwilling to wait for days, or even weeks, for the funds. Traditional financial institutions have a pre-determined set of procedures that consume a lot of time. Applicants find it easier to log crypto-based P2P lending software and get the funds they require so urgently almost instantly.
Based on blockchain technology, cryptocurrency operations are transparent. Nothing is hidden and all aspects that a loan seeker may want to become familiar with are there for everyone to see. On the other hand, procedures in conventional financial institutions are opaque.
- No credit check
If someone has a poor credit score, they are likely to struggle in getting a loan from a bank. And in case one has no credit history, banks aren’t going to grant them a loan. Not with a P2P lender! For anyone who is facing a credit-related issue, approaching a P2P lending platform is perhaps the only viable option.
- Low interest rate
As anyone who has dealt with banks before, interest rates of banks and NBFCs (non-banking finance companies) are overbearing. Comparatively, approaching a P2P lending platform is much better, where they may get a loan at a considerably better rate.
How the structure of a cryptocurrency P2P lending platform contributes to the popularity
There are borrowers and lenders, but no active role of the third party in granting borrowers the loan. Of course, the platform is there to facilitate the transactions but it is limited to bringing the two parties together.
Both individuals as well as organizations qualify as borrowers or lenders. The absence of an intermediary puts the entire process on a fast track. For anyone unwilling to dispose of their funds or savings, and wants to open new revenue streams, white label crypto lending software works perfectly well.
How the process simplifies functioning
The working of a P2P platform starts with investor and borrower onboarding. Prospective lenders or investors who desire to get on-board create their profiles. The best P2P crypto lending software would update the lenders’ database on its own. Similarly, the individuals or organizations wanting a loan are needed to make their profiles and get included in the database. They have to deposit collateral to get the loan.
When a borrower places a ‘borrow’ order, it is for the matching engine to connect their profile with the right lender. Once the matching is done, the requested loan amount is released to the browser and the lender starts earning interest on the loan amount.
The best P2P crypto lending software scores heavily over conventional institutions like banks and NBFCs. Thanks to the absence of a third party and a streamlined system, they make it considerably better for both the parties concerned.
For anyone keen on entering the lending marketplace, Antier Solutions can provide top-of-the-line white label crypto lending software integrated with market-leading features, including instant KYC and AML verification, LVR calculation, flexible interest rate calculation, multi-currency wallet, auto-renewal of loan, multi-layer security, robust admin panel, and more.
Schedule a free demo of our white label crypto lending software or connect with our subject matter experts to share your business needs.