Peer to Peer Lending for Dummies
So, what is peer to peer lending all about? Also referred to as marketplace lending, peer to peer lending in its simplest form involves matching borrowers with investors. With OurMoneyMarket, this is achieved 100% online through the OurMoneyMarket investment platform.
There are two sides to the OurMoneyMarket marketplace.
- (1) The borrowers: Everyday people looking to take out personal loans to finance various purposes (e.g. home improvement, debt consolidation, education etc.). Borrowers are assigned an interest rate by OurMoneyMarket who is responsible for assessing the credit risk of the applicant. Upon accepting the loan offer, borrower’s loans are listed on the OurMoneyMarket marketplace for investors to invest in.
- (2) The investors: A mix of mum and dad investors and institutional funds invest in loans in minimum amounts of $50. As a borrower pays back their loan, the principal and interest (net a service fee) is passed on to investors in an amount proportionate to their investment. With a minimum investment amount of $50, investors can spread their risk across many loans.
Check out our infographic below for more information on peer to peer lending.Peer to Peer Lending For Dummies – OurMoneyMarket
Follow Us on Facebook
Please message us on Facebook (https://www.facebook.com/ourmoneymarket/) if you have any questions about peer to peer lending. If you found our article helpful in any way, please don’t forget to share us with your friends by liking our Facebook page.
This information has been prepared as general information only without taking account the objectives, financial situation or needs of individuals. All investors should seek their own financial, legal and taxation advice relative to their own circumstances before making an investment.