This day in age, almost everything around us is digitalized. Lenmo has taken this one step further and created a platform that facilitates P2P lending. If you haven’t heard of P2P lending before, unlike banks, credit unions or payday loans, P2P lending provides you with competitive interest rate options.
What Makes Lenmo Different
Lenmo is a free market platform where people who are looking to borrow money are connected with people who are looking to invest. What does free market mean? Free market means that interest rates are determined by the users and not by banks, underwriters, or any exterior factors. The investor offers a rate for the loan and the borrower can either accept or look for another rate.
The Perks of Investing with Lenmo
- Investors choose who they want to lend money to
With Lenmo, transactions are 1-to-1, meaning that one lender is funding one loan. As an investor, you can choose who you want to lend money to and how much money you would like to lend.
To help you assess investment opportunities, which range from $50-$5000, we provide each borrower’s credit report information and Lenmo borrowing history. From there, you can gauge the risk of the transaction and choose the appropriate interest rate you would like to offer. Simple enough, right?!
- Not all of your eggs are in one basket
With a variety of people requesting loans, investors have a pool of loans to choose to fund. Investors can review the various borrower profiles and compare them against other requests. It is recommended that investors invest in a diverse set of investments that are a combination of low, medium, and high risk depending on the individual’s comfort level, of course.
- Investors choose their own interest rate
Being in control of the return you want is what really sets Lenmo apart from other investment options. With the free market at play, interest rates will be determined by supply and demand. Borrowers will be looking for the best interest rate they can get. If you continue to make offers and get declined, consider lowering the interest rate you are offering. The “Feed” tab within the app will help give you an idea of what similar loans are going for.
There you have it – investing with Lenmo is as simple as that! Give it a try – download the app here.