Invest in loans online?

Currently, loans between individuals are an accessible form of investment. That is, you can earn money by lending money to other people through Internet platforms.

Loan companies that use financial technologies (fintech) can operate with lower overhead costs compared to traditional financial institutions. This translates into cheaper loans and investments with better returns.

 

Sounds pretty good, right?

money

However, these loan and investment platforms are relatively new, and therefore, you must consider several factors before investing in any of those that exist in the market.

Currently, loans between individuals are an accessible form of investment. That is, you can earn money by lending money to other people through Internet platforms. Loan companies that use financial technologies (fintech) can operate with lower overhead costs compared to traditional financial institutions.

This translates into cheaper loans and investments with better returns. Sounds pretty good, right? However, these loan and investment platforms are relatively new, and therefore, you must consider several factors before investing in any of those that exist in the market.

 

What are online loans?

What are online loans?

Loans between individuals are the way in which people lend money to other people or companies, through online services, without the intermediation of financial institutions. In these cases, you decide which people to invest in. In other words, P2P platforms connect people who require a loan with people looking to invest.

In general, people who ask for a loan should indicate the objective that the money will have, what we will call “project”. Among the most common projects are buying a car, starting a business or making repairs in a house.

 

Are internet loans regulated?

Are internet loans regulated?

Thanks to the approval of the Fintech Law (2018), the platforms that work in this model will have to be evaluated and supervised by the Condusef, which may also impose fines.

Before these companies operated without a supervision of the authorities, so most investors were not certain in case of the worst: fraud or non-payment. Loan companies are still in the process of transitioning to the incorporation of these new rules. So, you have to be very aware.

Likewise, the National Banking and Securities Commission (CNBV), and in the case of investments, the Bank of Minano will have to approve the operation of the platforms. The direct relationship with the CNBV and Bank Minano allows companies to deal directly with the tax obligations of users. This saves you a lot of problems.

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