Banks vs Peer-to-peer Lending: Where to Put Your Money?

Is your money sitting in a bank account earning next to nothing? Are you a first time, risk-averse investor who chooses to put some of your money in a time deposit account just because it is among the safest investment options, even if you only earn 4-5% a year? Did you know that after you take into account the 20% income tax and inflation rate, your savings or time deposits may actually produce negative returns?

The answer to your problem is simple: you need to put your money where it can generate higher returns.

A conservative, risk-averse, investor like you can benefit from the peer-to-peer lending model. P2P lending platforms offer lending opportunities that can earn you a return starting from 10% per year. Looking for a platform that offers a guarantee that the money you are lending is safe and protected? MEKAR has lending partners that provide a guarantee for your principal.

Check out the infographic below comparing banks to peer-to-peer lending both from the lenders’ and the borrowers’ perspectives.

Banks vs Peer-to-Peer Lending