HomeBlogKnowledge CenterWhy should you apply for loans from Peer-to-Peer Lending and not from banks?

Why should you apply for loans from Peer-to-Peer Lending and not from banks?

Are you facing issues while getting loans from traditional banks? Here are some tips which will help you to apply for loan online via peer to peer lending.

Looking to borrow some money? Heading to the bank or using a credit card, even asking a friend or relative would be your usual modus operandi. However, there is another option in today’s fast-paced digital world i.e peer-to-peer lending! It is a great option for those looking to borrow money online. With the world becoming digital and more people hopping onto the social networking wagons as well as the growing number of online lending platforms has facilitated peer-to-peer borrowing in our country. People can now borrow money online at a peer-to-peer lending company where in the investors are looking for a place to park their funds for a higher interest rate. They can then lend money online to borrowers looking for instant personal loans that are so small that banks tend to avoid them. Thus this makes life easier for all those looking for loans without the hassles of dealing with banks. There are a number of benefits of peer-to-peer lending as mentioned below:

Faster Approval Time

With Peer-to-peer lending, the approval time is shortened considerably. Whilst banks would normally take a long time to assess your credibility and paperwork, loans on lending sites enables borrowers receive the funds within 18 hours. Sometimes the loans are approved within minutes as well. Within 18 hours of loan registration a borrower can have the funds.

Easy Verification process

Whilst banks have an intense verification process be it personal discussions, to loads of paperwork, with P2P lending, borrowers credentials are verified through various online and offline sources. This makes the borrowing experience pretty much hassle free. It also eliminates any office/home visits making it a very flexible process.


In spite of being an online platform, there are some lending platforms, which give privacy of the client a status of utmost importance. Therefore getting a loan here is fast as well as safe with your private information remaining protected and your data remaining secure.

Guaranteed Funding

With Peer-to-peer lending companies in India, there are a large number of approved lenders who make sure the loan will get funding. These sites guarantee funding of your short-term loans. There is no risk of loss as a part of the registration fees is returned in case the loan is not funded for some reason. This is unlike the banks in which if your credibility does not match the bank’s standards you still lose the application fees as well as the time invested.

Credit Score determines your rate of interest

Every individual borrower’s interest rate is set on the basis of an internal credit rating process after the analysis of different parameters. A peer-to-peer lending company will give your profile a score and a higher score will garner you a lower interest rate. This is much better than the banks in which your credit history is the main parameter.

Thus with nominal registration fees and without the hassles of any physical meeting with a lender, a person looking to borrow funds can have access to them in a matter of a few mouse clicks with peer-to-peer lending.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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