What are the advantages of P2P loans over regular loans?

P2P loans have a number of advantages over conventional bank or non-bank loans. Which ones are the key ones and which companies mediate or previously mediated P2P loans in our country?

Lower interest

money cash

One of the most important advantages of P2P loans is their interest. They operate here on a slightly different principle than traditional bank or non-bank loans. E.g. For a market leader, Lite Lender has a credit rating, according to which the relevant interest rate is set and, logically, the higher the risk of default, the higher the interest. Clients with minimal risk then have very low interest rates, which are even more advantageous than with a bank.

Higher chance of application approval

Higher chance of application approval

On the other hand, applicants with a worse rating get worse interest, on the other hand they have a chance to get a loan – again, there is an advantage over banks, which usually have stricter conditions and more people will not pass through their network. Compared to non-banking companies, P2P loans are much more advantageous, except for the first free loans, where the maximum amount of credit is very limited and the loan is only short-term.

They are absolutely safe

With P2P loans you don’t have to worry about fraud – individual operators must have a license from the Well National Bank and everything is absolutely safe, proven and legal.

Wide credit line

With its credit line, P2P loans are more like bank loans, for example, the market leader, Lite Lender offers up to USD 750,000, and for other operators the upper limit is in the range of hundreds of thousands of crowns. This is of course related to the maximum maturity, which is usually from 60 to 84 months. The exact length of the maturity can be set by the borrower himself according to his needs and repayment ability.

Thanks to P2P loans you can even earn

Thanks to P2P loans you can even earn

P2P loans are not only interesting for those who need to borrow money – they are also a great and unique opportunity for investors, not only for people with high capital, but also for ordinary citizens who have no investment experience and would like to try it with minimal risk . P2P loans are the perfect way to try to invest, with just a few hundred.

The largest operators of P2P loans in the Well Republic

There are currently several companies operating P2P loans in the Well Republic. Which of them is one of the most important?

  • Lite Lender – currently probably the most popular Well P2P platform where you can apply for a loan from 20 000 to 750 000 USD with a maximum maturity of up to 7 years. Zones offer advantageous interest rates that start at 2.99% per annum and can be even more advantageous than a bank. The maximum APR (annual percentage rate of charge) for Zona is 31.94%.
  • Best Bank – the oldest provider of P2P loans in the Well Republic – Best Bank started to provide its services already in 2010. Currently, it offers several variants of loans, the amount of which is graduated according to whether the client can prove income, have records in the registry and whether guarantee real estate. The last variant can be obtained up to 600 000 USD for 6 years. Even Best Bank offers an opportunity for investors who can invest in loans to appreciate their money.

Several other companies operating these loans.

Several other companies operating these loans.

Another option is to use the services of one of the foreign platforms. Previously, it was also possible to obtain P2P loans through the following companies:

  • Yellow Melon – a Welloslovak project that offered three types of loans – a non-purpose loan up to USD 250,000, a quick loan up to USD 15,000 and a housing loan up to USD 265,000. At present, however, it is offered only in Slovakia, in the Well Republic their provision was discontinued for legislative reasons.
  • Benefi – former P2P loan operator ceased its operations in March 2017, previously offering loans up to USD 250,000 with maturity up to five years.