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How does peer-to-peer lending work?

In the financial market, the loan between individuals It is also known as P2P (Peer-to-peer Lending), but this term is more commonly used when it is carried out between individuals and companies (people who lend to companies).

THE peer-to-peer lending It is characterized by loans between people, however, the collection and distribution of amounts are carried out on a web platform.

Furthermore, it happens without the need for intervention from a financial institution.

This loan model brings together people who need money with investors looking to invest their assets at more profitable rates.

In the past, it was very common for companies to request P2P lending to invest in the business, but nowadays it is more comprehensive, and anyone can apply for one.

What are the advantages?

The main advantage for the borrower is obtaining money to organize their financial life, but with lower interest rates than those applied in traditional credit models.

As it is a loan between individuals, that is, without the intermediation of a financial institution, the income is not charged through fees or interest rates, for example.

Therefore, the rates applied are lower than those offered by the bank in its traditional credit services.

Furthermore, negotiations are carried out between the lender and the borrower, in which case it is easier to obtain a payment term that fits your conditions and smaller installments.

Not to mention that the process is less bureaucratic and simpler: complicated credit analyses and extensive contracts are left out. lending community.

The creditor also benefits from this modality, as they have a higher return on investment.

Below, learn about two companies that offer this loan model and how it works.

How does PicPay's loan between individuals work?

This loan model is known as Loan club in the PicPay app. In fact, the fintech has become the largest platform to offer this type of credit in Brazil.

PicPay highlights the following as the main advantages of taking out a loan through its P2P platform:

Legal Security;
Friendly billing;
Ease of conversation;
Predictability.

Have you ever stopped yourself from applying for a loan from a bank or even a family member just because you were afraid of being charged disrespectfully?

Node loan between individuals carried out on the PicPay platform, this is not a problem!

The fintech itself charges the loan carefully and comprehensively. However, to avoid any type of charge, carry out financial planning and choose installments that you can pay within the agreed period until the end.

First of all, this alternative needs to be available in the super app, this may take a while to happen and depends a lot on your relationship with the fintech.

If you are already eligible to apply for this type of loan, simply submit a request with the amount and in how many installments you want to pay.

Then, an assessment of your credit profile will be carried out. If approved, PicPay divides the amount into shares that, in turn, can be purchased by investors who wish to make their money yield and receive remuneration for the operation.

In fact, investments in Loan club are yielding 162% per year. Once you manage to organize your financial life, you can stop being a borrower and become a lender/investor.

Loans between individuals are only carried out between fintech customers, so if you are not yet a customer, find out how to open your account.

Advantages	Disadvantages
Loans of up to R$1,000,004,000	You have to wait for all the shares to be purchased by investors
Rates starting from 1.8% per month	Score is considered in risk assessment
All items are exempt from IOF	If all shares are not purchased, the amount will not be released.
Custom installments	You have to wait for the function to appear in the app, which can take a long time.
Digital 100% Request

How does Bullla's loan between individuals work?

Bullla is another financial community that offers collective loan. It is a SEP (Peer-to-Peer Loan Society), regulated by the Central Bank under Resolution No. 4,656.

In this SEP, the loan works a little differently than PicPay, but the interest rates are also lower, as there is no intermediary.

If you need money to pay off debts, organize your finances or invest in a personal project, you can do the following.

Access the Bulla website and click on “Simulate Loan”, you will need to provide your details to complete the registration.

Afterwards, an analysis of financial behavior in the market will be carried out, for example: whether you pay your bills on time, whether you have outstanding debts, or whether you have a bad credit history.

From this, you receive a risk rating, just like with PicPay. This rating appears to investors when they receive the loan request.

This way, they can assess the risks of lending money through investment.

Then, if you pass the credit analysis as a good payer, you can carry out a simulation.

Then, just wait for one or more savers to choose your loan! After signing the contract, the money will be in your account within a few hours.

Furthermore, Bulla puts the borrower in contact with the saver to resolve details of the negotiation and even obtain better payment conditions.

Conclusion

As you can see, the loan between individuals It is a great alternative for those who need money. This is because it is simple and has great interest rates.

However, it is not the best alternative for those who need money urgently. If this is your case, the ideal is to look for another type of loan.

Don't forget, to boost your peer-to-peer loan approval It is very important to be seen as a good payer.

So, always pay your bills on time! In the case of PicPay, make the most of the services it offers in your digital account app.

By: Nara updated ago 2 years back