Are you tired of traditional banking and want to explore peer-to-peer (P2P) lending platforms? P2P lending has become increasingly popular as an alternative to traditional banking, enabling borrowers and lenders to connect directly without the need for a middleman. However, not all P2P platforms are created equal. Some lack proper security measures, and this can put your investment at risk. In this article, we’ll review the top secure P2P platforms that ensure the safety of your investment.
What to Look for in a Secure P2P Platform
Before looking at the top secure P2P platforms, it’s crucial to understand what to look for in a secure platform. The following features must be present in any reliable and secure P2P platform:
- Regulated and licensed by financial regulators
- Clear and transparent loan terms and conditions
- Robust cybersecurity measures to protect user-data and transactions
- Proper underwriting standards
- Sufficient capital in the platform’s reserve fund
Top 3 Secure P2P Platforms in 2021
Now that you know what to look for, let’s take a look at the top 3 secure P2P platforms in 2021:
1. LendingClub
LendingClub is one of the largest P2P lending platforms in the US. The platform is well-regulated and licensed, offering borrowers unsecured personal loans with competitive interest rates compared to traditional banks. The minimum investment amount is $25, making it an accessible platform for investors of all levels. In addition, LendingClub has robust cybersecurity measures, proper underwriting standards, and a $500 million reserve fund to protect investor funds.
2. Funding Circle
Funding Circle is one of the largest P2P lending platforms in Europe, with more than $12 billion in loans issued to SMEs. The platform is well-regulated and licensed by financial regulators in the UK, US, and Europe. Funding Circle has a minimum investment amount of £10 and offers investors diversified portfolios of SME loans. The platform has advanced underwriting algorithms, robust cybersecurity measures, and a £46 million reserve fund to protect investors.
3. RateSetter
RateSetter is one of the largest P2P lending platforms in the UK. The platform is regulated and licensed by the Financial Conduct Authority (FCA), offering borrowers personal loans and SME loans at competitive rates. RateSetter has a minimum investment amount of £10, making it accessible to a wide range of investors. The platform has rigorous underwriting standards, robust cybersecurity measures, and has a reserve fund of over £40 million to protect investors.
Conclusion
Investing in P2P lending platforms has gained popularity for the various benefits it offers. However, investing in a P2P platform without proper research and knowledge is highly risky. The three platforms, LendingClub, Funding Circle, and RateSetter, offer a secure and reliable environment for investors. With proper due diligence, investors can gain tremendous benefits from P2P investing while having peace of mind that their investments are secure.
