Peer-to-peer finance is revolutionary in nature, and there remain several reasons why you should be participating in it as a borrower or a lender. Check out five reasons to be a P2P borrower at Monexo.
It can take 26 years to pay your credit card debt
Have HKD 20,000 in credit card debt? Plan to fund the minimum monthly repayment? I hope you are comfortable, because it will be a 26 year ride before you pay off that amount.
You’ll also end up repaying over HKD 65,500 in principle and interest for your troubles
At 35% APR (source: HKMA presentation). HSBC APR for credit cards currently between 36 - 38% (Source: HSBC website as of April 14, 2015)
No prepayment fees
Typically financial institutions charge you 3% for or more for paying your debt off early. Why charge for prudent behavior? At Monexo, it’s your loan, and if you want to pay it off early, that is up to you. We sure won’t be charging you a dime for it. Prepay your loans without penalty.
You do not need to run to wait in long lines at the bank, nor will the platform close after the 9 – 5 day is over. Loans can be listed on the platform in less than a day from the comfort of your home.
You are unique
Banks tend to adopt a blanket approach, charging exorbitant interest rates to everyone. Peer-to-peer lending allows each borrower to seek funding from lenders who are comfortable with their level of risk profile, on a case by case basis.