It is not uncommon for people to opt for banks when they need money. If you need money for personal or business purpose, you can take a bank loan.
But it should be noted that taking a bank loan is not the only option since you can take a personal loan from a P2P lending platform, which has become popular in the recent years due to its efficiency and transparency.
P2P platforms cut down the middle man and bring the borrowers and lenders together.
In order to choose which one is better, you can look at the below differences in P2P loan and a bank loan:
A bank loan gives you two types of options, i.e. secured loan and unsecured loan. An unsecured loan is generally used for smaller amounts. The borrower borrows a fixed sum and then pays it back as per the agreed terms. Once the loan agreement has been signed, the interest rate is fixed.
A secured loan is usually taken for a larger amount and it is for this reason that it is secured with an asset. Secured loans can be paid o continue reading →