Frequently Asked Questions
No, it’s not recommended. Interior paints are not formulated to withstand outdoor elements like UV rays, moisture, and temperature fluctuations. Exterior paints contain additives for durability outdoors but may not be suitable for interior ventilation or finish.
Platform fees can vary widely, often charged to both lenders and borrowers. For lenders, it’s typically a percentage of the interest earned, while for borrowers, it might be an upfront processing fee.
Yes, the more frequently interest is compounded and reinvested, the faster your investment can grow. Monthly compounding generally yields higher returns than annual compounding for the same interest rate.
A shorter loan duration usually results in a higher EMI but a lower total interest paid, saving the borrower money in the long run. A longer duration lowers the EMI but increases the total interest cost.
P2P platforms directly connect individual lenders and borrowers, acting as a marketplace, while banks use their own funds to lend and are highly regulated financial institutions.
Yes, P2P lending involves risk. While platforms use credit checks to mitigate risk, there is always a possibility of borrower default, which can lead to a loss of the principal amount.
In the initial months of a loan, a larger portion of the EMI goes towards paying off the interest. As the loan progresses and the principal balance decreases, a larger portion of each EMI goes toward repaying the principal.
You can use this feature to see how continuously reinvesting your monthly interest earnings (instead of withdrawing them) can significantly amplify your overall wealth over the loan’s duration, a key strategy for investors.
