Peer-to-peer Lending

Despite much criticism from banks peer-to-peer lending is gaining more trust from small investors around the world. Even with no guarantees whatsoever and a relatively low return offered by such companies the inflow of investors increases exponentially month on month making it a good alternative to banking sector. First, the interest rate is much higher than the one offered by banks. Second, since 2008 trust in banks diminished roughly by one third. And third, and most important thing is the ambition of private investors to transform the world banking system in something new, simple and comprehensible to everyone. The proof to all of this are Lending Club and Prosper that proved to be excellent examples of developing and advancing alternative mechanisms of the non-banking system. The average annual interest rate for investing through said platforms varies from 4% to 6%, and an average percentage of bad loans makes up from 1.8% to 2.9%. But still it should be acknowledged that they have achieved quite impressive results evidenced by the mere fact of issuing loans worth of tenths billion dollars. Since UCG TRUST was launched at the beginning of 2016 this online platform sparked burning interest of the US investors. It is run by the international financial corporation United Capital Group that provides lending in 5 countries and combines 5 online lending platforms, in particular in the United Kingdom, the Czech Republic, Slovakia, Malaysia, and India. The operating procedure of UCG TRUST cannot be considered as peer-to-peer lending, however taking into account diversity of its assets at present, this is the only company on the market that assumes liability to its investors and guaranties to pay return on investments. When compared with other platforms, investing is quite simple, though in certain aspects resembles an option of automatic lending selection. You merely have to open a deposit account on the web-site, select term of investment and transfer money to your account. The deposit interest rate is directly correlated with the term of investment and can amount up to 11% p.a. But the most important thing is the fixed return without any deviations throughout the entire investment term ensuring a steady income. Having learned the operating procedures of these Internet platforms I’ve reached the sole conclusion that the future belongs precisely to said platforms.

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