Are P2P lending really safe? || bekifaayati #youtubepartner #youtubeshorts #shorts

The risk of peer-to-peer lending is the risk of borrower default, i.e. the borrower does not pay the interest or principal amount. If a borrower defaults, a P2P platform can help lenders recover and file a legal notice against the defaulter. But that's all the platform can do.

With P2P Lending – Unfortunately, as investors, you are entirely at the mercy of the P2P lending platform’s valuation. So if the platform's risk scoring model isn't performing well and it can't properly assess the borrower's risk levels, you end up taking on a much higher risk than you'd like.

Please take the opportunity to connect and share this video with your friends and family if you find it useful.