The everyday Aussie is increasingly choosing a peer to peer personal loan

ASIC’s second marketplace lending survey revealed that $300 million worth of personal and business loans were written by peer to peer lenders during the last financial year – almost double the amount commissioned during the 2015/2016 financial year.

Speaking about the data, ASIC Commissioner John Price said that the survey results indicated the continuing growth of the marketplace lending industry as Aussies look for the best deals and rates on their loans.

“This survey helps ASIC to better understand and regulate these businesses, and to identify areas to monitor in future,” said Price.

The snowballing popularity of these types of loans is measured by the fact that, as of June 2017, the industry had 7,768 investors and a further 18,746 borrowers – numbers that had doubled over the preceding 12 months and are only set to grow in the new year.

ASIC also noted that, at this stage, complaints against peer to peer lenders remain relatively low.

What is P2P lending?

Peer to peer lending cuts out the middleman (the banks) allowing everyday Aussies to both invest and borrow from each other through a regulated platform.

For borrowers, peer to peer lending presents the opportunity to nab a personal or business loan, often at better rates than a traditional lender with low fees and faster online application process.

At the same time, this form of lending offers investors the opportunity to put their spare cash to use with potentially higher returns than other fixed income investments.

To read more, please click on the link below…

Source: The everyday Aussie is increasingly choosing a peer to peer personal loan – here’s why – Mozo