There is still a lack of knowledge about how to take advantage of the different investment instruments, proof of this is that only 1.2% of the population saves in an investment fund, according to the latest National Survey of Financial Inclusion (ENIF).
For this reason, we undertook the task of listing the 5 advantages of using digital loan platforms, specifically between individuals.
Invest in digital platforms?
There are 5 advantages of using digital loan platforms, specifically between individuals.
- Interest rate. This is determined according to the financial behavior of the candidate. The result can vary between 9 and 29%, which is normally less than the 30% average interest offered by traditional institutions.
- Online procedure. You do not need to leave home to apply. It is enough to 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 type of financing, which represents a boost to the bankarization of society.
- Without endorsement The fintech universe allows loan applicants who meet the minimum requirements to access capital, without the need for a third party involved.
- 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 default.
- 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 you to carry out financial transactions. They have become viable options to carry out operations similar to what would happen with the on line bank.
By logging into online banking, you can transfer money and schedule bills to be paid directly from a bank account, instead of going to a branch, it’s all possible to do from home. The same goes for trading platforms for loans and investment. 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:
- Identify what are the functionalities it offers.
- Understand the fees and commissions you charge.
- A friendly and easy-to-use interface both from the computer and any other mobile device.
- 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 a request to the lending platform between individuals (also called peer to peer P2P). The platform will carry out a credit analysis prior to the acceptance of the application and will assign a risk level according to the borrower’s profile, according to their credit history. The higher the risk profile, the more interest you will pay since investors will take more risk and expect a higher return.
Advantages and disadvantages of investing in digital platforms
- 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 microfinancing more agile.
- The delinquency on the part of the applicant for the money and his lack of commitment to settle his debt.
5 advantages of investing in digital lending platforms between individuals
1. Better interest rates
The use of technology in the evaluation of candidates allows a more precise diagnosis of the risks represented by the approval of your 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 it is done online
As they are digital loan platforms, you do not need to go to a branch to make the request, it is enough to 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 type of financing, which represents a boost to the bankarization of society.
3. No endorsement
According to the latest National Survey of Financial Inclusion (ENIF), the lack of endorsement or guarantee affects 5 percent of people who were denied 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. It is not a 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 with better payment conditions, for example, consolidating 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 the money among the best profiles, with a delinquency of only 1.5 percent, compared to 6.3 for personal loans from banks. As if that were not enough, the returns offered by the platform are an average of 18.4 percent per year, which exceeds that of other products such as CETES.
Now you know, if what you want is 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 also allows us to set a quantity and time parameter. Therefore, it is important to know what you want to do to find the type of investment that best suits this objective.