P2P lending!

Peer-to-Peer (P2P) lending is an investment product where investors fund individuals who may be unable to access credit from banks and other financial institutions due to low credit scores or lack of collateral. Although the lending amounts are small, investors need to ask themselves if this is how they want to use their monies by funding individuals with low credit scores. The platforms which provide these investment services are merely distribution channels and will not take the onus in case of any default or delay. Such products carry the risk of investing in unknown entities or individuals. The cost here is the opportunity loss and the risk to capital, which is very high.