OMLP2P Blogs

There are different types of investment options meant for investors with different investment horizons and risk tolerance. However, in the past year, most of the asset classes have failed to entice investors as markets whether it is equity or debt have remained volatile. It also saw kneejerk reactions from various market participants. With the interest rates moving south, traditional deposits, considered as a safe investment option by many investors, had a lacklustre year. Alternative investments that are not market-linked are limited to just HNI investors. In this case, there are hardly any options for investors looking for a regular steady source of income. In such a scenario, peer to peer lending becomes an ideal investment option.

The objective of the Peer to Peer (P2P) lending platforms like OMLP2P is to match lenders and borrowers over an online platform to provide unsecured loans. This helps borrowers to get easy and fast loans with minimum of documents and hassles while simultaneously fetching higher yields for the lenders / investors. The profile of the borrowers is screened on the basis of multiple parameters to safeguard investor's interest.

To avail, the facility, both the lenders and borrowers need to register and provide few of documents including some KYC proof. You as a lender / investor can lend money online, any time of the day at your convenience and browse through the different borrower profiles, check their assigned scores and various important parameters to select the borrowers of your choice providing you best returns on your investments in accordance with your requirements. Few P2P platforms use algorithms to match borrower profiles with your preset criteria which are based on the amount you want to invest and your risk appetite.

Why should you invest in Peer to peer lending?

High Yield with Regular Cash Flows: With P2P lending, you can start getting high yields from the very first month, unlike other investment options that take years to deliver higher returns. You also receive regular monthly cashflows and this makes P2P lending an ideal investment option for investors looking for regular cash flows.

Select your own Investment time horizon: Depending on your investment horizon, you can lend money to the selected loans, whose time period is in lines with your investment horizon. In P2P lending, many loans mature within 1 to 3 years.

Graded Loan Assets: Just like any other investment options that are differentiated for different types of investors based on their risk profile, the same is the case with P2P lending. In P2P platform, not all borrowers are the same. Some borrowers come with higher risk than others. And as result, they have to shell out higher interest than others. So, you can take your pick depending on your risk taking capability.

Portfolio Diversification (Risk Management): Portfolio diversification helps to minimise the risk associated with your portfolio. You may have diversified your portfolio across the different asset classes such as equities, debt and commodities, P2P lending may further help you to diversify your portfolio and at the same time increase the returns potential and minimise the risk associated with your portfolio. You can also reduce the risk associated by lending to different and various categories of borrowers such as people borrowing to fund their marriage, children's education etc, and loans of different tenures.

Not market-linked (Least Volatality): In P2P, the risk is associated with just one person which can be further minimised by diversification. In the case of other investment options, the risk is based on various factors such as geopolitical tensions, corporate earnings and other news and events. Hence, you can continue to earn returns despite negative market sentiments by investing in P2P lending.

Build a passive source of income: P2P lending may also help you in building a passive source of income. If you wish to grow your income, the auto investment tool in many P2P platforms will help you to find potential borrowers and thus ensuring that your money never sits idle. The monthly returns are further reinvested month on month to harness the power of compounding.

You may even start with small: SIP is a popular investment tool for many mutual fund investors. You can enjoy similar benefits of SIP by investing in P2P in a similar way. You don't have to accumulate a sizeable corpus to start investing in P2P lending. This makes it easier to invest money online  and start investing and start earning returns. P2P lending platform like omlp2p, provide investment opportunities starting from as low as Rs. 2,000.

Overall, P2P lending provide you one of the best Alternate Investment so that you can diversify your investments profile in accordance with your risk profile and investment time horizon, build a passive source of income and at the same time earn higher interest / return on your investments. So, what are you waiting for? Start investing with OMLP2P today.

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