The emergence of peer-to-peer lending has created a new investment opportunity for income-seeking investors willing to do a little extra homework.
Peer-to-peer is an alternative income source that could work out well for investors who take the time needed to understand the risks and rewards. If this sounds like you, read on.
Peer-to-peer lending allows you to make loans to individuals or participate in pools of loans, limiting your risk. Peer-to-peer (p2p) lending is simply a platform for individuals to request a loan from funding sources outside of banks. Lenders and p2p investors are made up of everyday people who are willing to assume a portion of the loan.
For instance, say “John” wants to borrow 10,000 shillings.
Money is pooled from various individuals, each assuming a percentage of the loan. Say 20 people each agree to loan 500 shillings at an interest rate of 24%, then Prosper combines the money and issues the loan. Individuals are then paid both interest and principle monthly based on interest rate and their percentage of the loan.
We think this represents a win-win situation for both lenders and borrowers. Kenyaloans.com has thousands of borrowers and is now setting up a p2p lending platform.
If you would be interested in making an extra income by joining this platform as a lender, please fill in the form below. We will get back to you when the p2p platform is ready.