The 5 advantages of using digital lending platforms, specifically between individuals.

Invest in digital platforms?

There are 5 advantages of using digital lending platforms, specifically between individuals.

1. Interest rate. This is determined according to the financial behavior of the candidate. The result can vary between 9 and 29%, which is usually less than the 30% average interest offered by traditional institutions.
2. Online procedure. It is not necessary to leave home to make the request. Simply fill out a form and within a few minutes it will be confirmed if the credit was pre-approved. The use of the internet facilitates communication with the client and allows more people to access this kind of financing, which represents a boost to the banking of society.
3. No endorsement. The fintech universe allows loan applicants who have the minimum requirements to access capital, without the need for a third party involved.
4. It is not revolving credit. This means that, unlike credit cards, personal loans cannot be used repeatedly. They are granted only once and, when settled, must be requested again to obtain another amount. That is why they are considered useful to meet specific financial goals, even in better conditions for those who need to consolidate debt or want to get out of a situation of default.
5. Advantages to investors. Since it is a platform between individuals, both the investor and the applicant benefit. They are platforms that diversify the capital of their investors among different borrowers and that reduces the risk of delinquency and allows an annual return of more than 15%

How to invest in digital platforms?

Digital investment platforms are software that allow financial transactions. They have become viable options to carry out operations similar to what would happen with online banking.

By logging into online banking, it is possible to transfer money and schedule bills to be paid directly from a bank account, instead of going to a branch, everything is possible from home. The same goes for trading platforms for loans and investments. They offer different functionalities that allow financial transactions to be carried out from the Internet.

Here are the factors to consider when choosing a platform:

1. Identify what functionalities it offers.
2. Understand the fees and commissions you charge.
3. A friendly and easy to use interface from both the computer and any other mobile device.
4. Clarity with detailed information, analysis, and reports on all available actions offered.

Invest in loans between individuals

Loans between individuals allow many people in need of money to get the credit that will solve a good part of their problems.

When a borrower seeks financing, they make an application to the peer-to-peer P2P lending platform. The platform will carry out a credit analysis prior to the acceptance of the application and will assign a level of risk according to the profile of the borrower, according to their credit history. The higher the risk profile, the more interest it will pay as investors will run more risk and expect a higher return.

Advantages and disadvantages of investing in digital platforms

Advantage:

• In digital loans between individuals, the returns can be good, depending on the credit situation of the person to whom the loan is granted. In addition, these platforms make microfinance more agile.

Disadvantages:

• The delinquency on the part of the applicant of the money and his lack of commitment to settle his debt.

5 advantages of investing in digital platforms for loans between individuals

1. Better interest rates

The use of technology in the evaluation of candidates allows to execute a more accurate diagnosis on the risks represented by the approval of their credit. In the case of La Tasa, more than 147 variables are analyzed to determine an interest rate adjusted to the financial behavior of the candidate. The result varies between 9 and 29 percent, compared to the 30 percent average interest offered by traditional institutions.

2. The procedure is done online

Being digital loan platforms, you do not need to go to a branch to make the request, just fill out a form and within a few minutes it is confirmed if the credit was pre-approved. The use of the internet not only facilitates communication with the client, but also allows more people to access this kind of financing, which represents a boost to the banking of society.

3. No endorsement

According to the latest National Survey of Financial Inclusion (ENIF), the lack of guarantee affects 5 percent of people who denied them a loan. Fortunately, in the fintech universe this condition has been eliminated, which will allow those who do have the minimum requirements, not to see their application interrupted.

4. Not revolving credit

Unlike credit cards, personal loans cannot be used repeatedly, that is, they are given only once. When liquidated, the process must be carried out again to obtain another amount, so these loans are very useful to meet specific financial goals in better payment conditions, for example, consolidate a debt.

5. Offer advantages to investors

Being a platform for loans between individuals, both the investor and the applicant benefit. For its part, La Tasa has managed to place money among the best profiles with a delinquency of only 1.5 percent, compared to 6.3 that have the personal loans of banks. As if that were not enough, the returns offered by the platform are at an average of 18.4 percent per year, which exceeds that of other products such as CETES.

Now you know, if you want to invest and obtain competitive returns, La Tasa is the option. This platform diversifies the capital of its investors among different borrowers with an excellent profile, which reduces the risk of default and allows an annual return of more than 15 percent.

Remember, allocating money for a specific goal not only serves as motivation, but allows us to place a parameter of quantity and time. Therefore, it is important to know what you want to do to find the type of investment that best suits this objective.