What are the advantages and disadvantages of P2P online lending platforms?
P2P online lending (100% principal guarantee) (up to 20% annual conversion rate) (minimum starting from 50 yuan) is Peer-to-peerlending, or peer-to-peer credit, which refers to social entities using the network platform of intermediaries to transfer their own funds
A new business operating model for lenders.
It is the result of the development of private lending from "offline" to "online" and is the embodiment of citizens exercising their property rights.
The increasing development of network technology, the restriction of formal financing channels, the deconstruction of the acquaintance society, the increasingly high inflation rate, the restriction of investment methods, and the continuous improvement of the personal credit system have all contributed to the emergence and development of P2P online lending.
Online loan investment has the following characteristics: 1. Low investment threshold.
Except for Lufax, which requires a minimum investment of 10,000 yuan, most online lending platforms have investment thresholds as low as 50 yuan.
Compared with the high threshold of trust and bank financial products, online loan investment is a low-threshold public financial product suitable for investors of all classes.
2. Investment income is stable.
As a loan product with an agreed interest rate, the income from online loan investment is relatively stable. Referring to the lending interest rate level of China's online loans in the past five years, the average overall rate of return is about 20%.
Of course, with the recent emergence of new platforms with more marketing activities, the overall rate of return has been on the rise.
The interest rates of mainstream online lending platforms are stable but declining.
3. The investment period can be freely planned.
When investing in online loans, you can choose the investment period based on your own needs and actual future conditions, and many platforms also allow investors to use unexpired investments as guarantees to borrow money on the platform to meet unpredictable funding needs.
This releases the liquidity of online loan investments.
Investors can choose the investment period based on future capital needs, or borrow money on the platform to withdraw money temporarily and quickly.
Meet various financial needs in real life.
4. Systemic risk is the main risk of online loan investment.
As an online form of private lending, credit risk is the main risk in online loan investment. That is, if the borrower does not repay the money, the investor may lose the principal.
However, in China, many online lending platforms that serve as financial intermediaries act as guarantors. If the borrower fails to repay overdue, the online lending platform will advance the principal or principal and interest, which allows investors to avoid the risk of overdue repayment by the borrower.
The credit risk of loans lies in whether the online loan platform itself is reliable and whether the platform itself can withstand the pressure of overdue loans.
As long as the platform exists, investors have no risk of losing their principal.
In a context where inflation remains, the economic situation is complex and there are few investment channels for investors to make money, the advantages of online loan investment have emerged.
First of all, compared with the sluggish Chinese stock market, the subsequent downturn in open-end funds and various private equity products, as well as low-yield savings and banking products that are inseparable from CPI, the yield on online loan investment is stable and remains high.
level.
Secondly, the liquidity of online loan investments can be enhanced through reasonable planning, and the liquidity is much stronger than trust products with many similarities.
On some platforms that allow net worth borrowing, if you submit a withdrawal application in the morning, the funds will arrive in the investor's bank card at noon or afternoon. The actual liquidity is stronger than that of monetary funds.
Third, the lowest investment threshold allows everyone to enjoy the benefits of investment, which is something that most other investment tools, especially high-threshold trusts and bank financial products, cannot achieve.
Fourth, compared with futures and other margin trading products, the risk of online loan investment is moderate, and through diversified investment, the risk is completely within the tolerance of ordinary people.
Finally, the requirements for investors are lower.
Online loan investment does not require much investment technology and experience. With most platforms guaranteeing capital, you only need to choose a safe investment platform to achieve stable returns.
Some platforms have automatic bidding functions. After setting up, you can automatically bid without being online, which is suitable for investors who do not have time to go online.
Online loan platforms are in an emerging stage in China and have just begun. Beware of being deceived!
Nowadays, without the protection of laws and regulations, it is difficult to protect the rights and interests of financial managers, so be careful, careful, careful, careful, careful, careful, careful!
I recommend you some articles on preventing being deceived!
Learn more, this industry can only have high returns after a painful struggle!
1. The current situation of P2P online lending. P2P online lending has developed rapidly since its emergence in China in 2005, showing a development trend in which business entities have doubled, the scope of involvement has continued to expand, the scale of funds has continued to expand, and the number of participants has increased sharply.
According to the existing P2P online lending operation model, it can be roughly classified into three categories: the first category, pure intermediary type.