For decades, diversity was a financial term that was not commonly used. Investors who were happy and relaxed with their investments prior to the 2008 crash were able to earn passive income through equity, real estate and gold. The collapse of the equity market made everything different! The financial crash revealed the unpredictable nature of the world, much like the quantum world with its many assumptions and theories. It showed that you cannot take anything for granted, even financial decisions.
Albert Einstein once stated, “If it’s not explained simply, it’s simply not clear enough.” It was finally used four and a quarter years later. Peer-to-Peer lending platforms were born. This brought simplicity to a world that was dominated by numbers and simple math. Peer-to-peer lending became an attractive investment asset due to many reasons.
Indian investors welcome change with open arms. Peer-to-peer lending in India was a huge success in its early years. It has continued to grow exponentially since then. This surge is understandable when one considers the nature of the asset and compares it to its competitors. Stock markets are not a place for certainty and anticipation. Investors can become irritable by the volatility, sometimes literally. These shortcomings are compounded by the complexity of stocks and detailed knowledge of balances, which can make it overwhelming for novice investors as well as seasoned ones. Peer-to-peer lending, on the other side, eliminates all of these problems completely.
Peer to Peer lending and mutual funds have gained significant investors over the past three years. Mutual funds are a more stable asset than any other, but they take time to mature and offer steady returns. This is where investing for the short-term doesn’t work. Investors can enjoy monthly returns through EMI’s in Peer-to-Peer lending, which gives them an advantage over their counterparts. The returns are also very high with some cases seeing interest rates in the 30’s.
Peer-to-peer lending is on the rise and you don’t have to look far to see why. Peer to peer lending in India has been around for many a decade. It is designed for both investors and borrowers who have a basic understanding of the concept.