Image source: Shriram Properties

There are two simplest methods to become profitable, first, you work exhausting and earn your month-to-month wage and second your assets work so that you just can herald that monthly income. The primary plan is followed by the majority. 

However, after a certain age, it isn't the potential to work, and you retire. Due to this fact, you want to spend money on an asset class that works for you, whenever you can not work. It ought to be successful to bring in month after month common returns whereas enduring very low risk.

The Peer to Peer Lending can be the solution you are looking for. It is a Smart investment alternative asset class i.e. highly recommended to include in your retirement portfolio, and thus, you could retire early in India.

Here is All that You Need to Know About Peer to Peer (P2P) Lending:

What is Peer to Peer Lending?

As the name implies, it is lending of money, by means of an online credit marketplace, between the peers or people, on mutually agreed terms.

In this scenario, as an investor, you are loaning your money to someone on a certain rate of interest. The choice of loans creates a major difference. If you screen your loans poorly, then it can be very risky. However, if you will choose the best-rated loans and diversify in all the risk categories, then Peer to Peer lending is a great way to earn lucratively high monthly returns.

For instance, one of India's leading P2P lending platforms, FAIRCENT, is offering an average return in the middle of 12% p.a. to 26 p.a. and if you screen your borrower's well and avoid loan defaults, then the returns can be significantly high in comparison to other market-linked investment.

How P2P works?

If someone on Peer to Peer lending platform has applied for an Online Personal Loan for INR 100,000 loan for the debt consolidation purpose, you don't have to invest the complete amount.

You can invest in part of the loan - may be Rs. 2000, Rs. 5000, Rs. 10,000 or Rs. 20,000. Similarly, a number of investors together will fund the loan to help this person to get that INR100,000 of the loan. Soon the EMI payments will begin. When the borrower starts to pay interest each month, you'll get a portion of that interest.

This how P2P lending works!

Month After Month Regular Returns

The returns in Peer to Peer Lending are of EMI nature. A lender starts receiving the EMIs (Principal and Interest) as soon as the borrower starts the repayment of the loan. This way is among current top ways to smartly invest money and to create a passive flow of income.