Is Peer-to-peer lending a passive income?

[uptrendfinancialsignal]

Peer-to-peer lending occur between individuals through online platforms, bypassing banks. Borrowers apply for loans, which are listed on the platform for individual lenders to fund based on risk assessment. Borrowers make monthly repayments, and lenders receive interest and principal. P2P lending offers higher returns than savings accounts, with diversification options and transparent details. However, it involves risks, and it may lack regulation.

 

[aovurevu]

It is actually a passive income source because one just need money to start earning money, but the only problem is the level of risk involved, if the site could be managed properly then there will be no issue regarding that.

 

[Bisolami]

It is actually a passive income source because one just need money to start earning money, but the only problem is the level of risk involved, if the site could be managed properly then there will be no issue regarding that.

I don't really think it is a passive income but it may be a passive income when the person is receiving interest but is very risky because it's likely for you not to get your money back

 

[capri]

Peer-to-peer lending schemes can indeed qualify to be programs for generating passive income.
I am thinking of Savings and Credit Cooperative Organizations through which members save their money frequently. Members who are in need then borrow these funds at a defined interest rate. The interest amount is used to pay dividends to members.

 

[Golden9]

It's passive income if you are not actively working on it to get members or the day-to-day affairs of the program. Passive Income means you get the returns with minimal or no effort after the initial work is done.

 

[Springtime]

I think it is a source of passive income if you are the borrower because you earn interest. But the problem with such kind of platform is the risk involved.

 

[Bisolami]

Peer-to-peer lending schemes can indeed qualify to be programs for generating passive income.
I am thinking of Savings and Credit Cooperative Organizations through which members save their money frequently. Members who are in need then borrow these funds at a defined interest rate. The interest amount is used to pay dividends to members.

You are right and there is even a way a lot of loan companies do it now that you may not be able to travel out or do things important to you whenever you have not paid their loan because your name will be on credit bureau

 

[Rubz]

Peer to peer lending is actually a passive sources of income. The only thing is that one needs to do some work at the beginning but after that one can earn passively from it.

 

[Authenticity101]

P2P lending is great in that you will earn an interest when your borrower pays back the money. But then there is no clear body that regulates p2p lending. Making it a very risky investment to venture into.

 

[nomad]

You do not need to work or spend time to do peer to peer lending, all you need is money to lend. Therefore, it is a passive income source. However, you need to choose a platform wisely.