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Peer to Peer – A New Revenue Earning Model

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There is no business in the market that does not run on risks, but a business plan in place can earn you high returns on your investments. P2P lending is one such platform that can be helpful for both lenders and borrowers who are looking for financial gains.

Let us understand what P2P lending is:

P2P or Peer 2 Peer lending is an online platform wherein a borrower and a lender come to the same platform to fulfill their financial needs. The P2P platform is for borrowers who can either be individuals or a business whose loan requirements and profile marches the business philosophy of the lender. This process excludes the involvement of a middleman.


The P2P platform surpasses the traditional method of borrowing from banks or other financial institutions. The banks deposit some assets of the individuals before funding a loan whereas in P2P platform makes it favorable with no such requirements. The P2P model also offers speed and ease of processing with less documentation when compared to other borrowing methods.


The P2P platform can be considered a face-lift to the traditional banking model. It also opportune the lenders to invest in diversified portfolios. This is beneficial when it comes to monthly return on investments and a fixed income generated from the portfolio one invests in. The returns are much higher than what is accrued from traditional saving methods.


Some of the advantages of P2P lending are:

  • Faster and more convenient – P2P lending method is an online procedure with less documentation so it is quite fast and convenient to procure funds. A profile of investors is already available to lend funds to the borrowers, which saves time and the process becomes faster.
  • Low-interest rates – As a borrower one has access to low-interest rates because of the absence of any intermediary. The transaction is directly between the lender and borrower without the presence of a mediator as in the case of other financial institutions.
  • Room for another loan – The P2P platform enables you to opt for alternative loan methods too that cater to your financial needs. This in turn creates a healthy marketplace for customers.
  • No assets security needed – The P2P loans whether secured or unsecured do not require a deposit of any assets as security as in the case of traditional loans.
  • High Returns on Investments – Investment in P2P lending can yield a high return on investments.
  • Risk diversification – In P2P a lender gets the option of investing in diverse portfolios, which reduces the risk of incurring losses.
  • Choosing the borrower – A lender has the freedom to choose the borrower based on his business proposal, credit score, etc.


To conclude we can say that P2P lending is a platform where borrowers can receive loans at a faster pace at low-interest rates and lenders can earn high returns on their investments. This is surely a very transparent platform for both borrowers and lenders.

RupeeCircle.com is the new age P2P finance company that offers an online platform to connect borrowers with lenders looking for better returns.

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