Why you should invest in P2P loans
March 3, 2020
Whether you’re new on P2P market, already investing in P2P loans or thinking of getting back in – this article may help you refresh your mind about investing in P2P.
Below the 8 major reasons why you should invest in P2P loans and why investing in P2P can be reasonable and powerful.
1) Invest in P2P makes your money grow
Who wouldn’t like to get passive income? We are sure – everyone wants. This is the simplest reason why people invest. Investing in P2P loans you can easily earn double-digit interest rate returns, which is clearly the main attraction of P2P lending platforms. Making your money work for you makes more sense than keeping it somewhere in the piggy bank.
2) Money sitting in cash are losing its value
No doubt you’ve heard of inflation before. Inflation is the slow but steady force that makes things cost more over time. That means that your hard-earned money sitting in cash are steadily eroding – slowly are losing its value over time. How fast does it erode, depends on the current rate of inflation.
According to the statistic, presented on statista.com, the inflation rate in the European Union in 2019 was 1,55% and in the Euro area – 1,23%. The forecast shows that by 2024 inflation in the EU will rise to 1.98%, in European area – to 1.84%. Investing in P2P will prevent your money from depreciating, even more – you will earn the profits also.
3) Great alternative for keeping deposits in the bank account
We all know that keeping money in a bank account is safer than having it under a mattress at home. But at present, depending on the country in which you live, banks pay very low interest or no interest at all on term deposits. In case you want to make your money grow faster and protect your savings from inflation, it is reasonable to invest. Of course, considering all the risks associated with the investment you choose.
Investing in P2P loans on PeerBerry, your investments will be secured with buyback guarantee. Most of loans are additionally protected with additional guarantee. Since the beginning of PeerBerry activity in 2017, all investors on PeerBerry earned profits. This speaks about high level risk management of our business.
4) Relatively high return on your investments
Investing on PeerBerry you can earn up to 13,7% annual return on your investments. Depending on the amount invested, you can receive up to 1% loyalty bonus and earn even more – up to 14,7% annual return. The more you invest, the higher return you receive.
In comparison with keeping deposits in the bank account, investing in stocks, buying bonds, real estate or most other investment options – investing in P2P brings relatively higher return on your investment. When various fluctuations in international markets influence the investing conditions, the return on investment in P2P loans remains quite stable.
5) Investing in P2P loans for diversification
If you invest in stocks, buy bonds, real estate or use other investment options – investing in P2P loans is a great option to add to your investment portfolio. Investing a part of your funs in P2P, you will diversify your portfolio and potential risks. Basically, the more ways you have to make money, the less you’re at risk from getting in financial trouble if any one method were to be disrupted.
6) Invest in P2P to save for retirement
It’s not a surprise, most of us want to accumulate a financial cushion to have a fuller old age. Most of us probably are not sure about the effectiveness of the pension policy in the country we live in. Some of us simply don’t trust the social security. This encourages us to think of alternative ways to raise funds for old age.
If you start investing when you’re young, you can build a tremendous amount of wealth for when you’re older. Investing in P2P can be one of great options to raise your funds for your future.
7) Investing in P2P is very flexible
Investing in P2P is very flexible. You can choose to invest only in short-term loans, such as one-month or just one-week maturities. A short investment period will allow you to feel free and comfortable as you are free to both reduce your investment portfolio and enlarge whenever you need. You can diversify your investment by splitting your funds between different countries and types of loans.
8) Investing in P2P loans is very easy
Investing in P2P loans does not really require any specific knowledge or experience. And you can start investing for as little as € 10. By using Auto Invest tool, you can fully automate the investment process. Just invest, set Auto Invest and it will do all the work for you. You just will have to enjoy your earnings.