How to make money by lending loans

[Frank]

There are new businesses springing up this year. Many of them are also looking for ways they can generate capital for the business to grow.

This makes it possible for one that is creative to setup up a loan scheme where you get to lend money to these businesses while you make interest on loans given at the completion of the loan. Have you thought about this method of making money?

 

[Anis Boukezzoula]

I assume you are referring about peer-to-peer lending with an interest rate. There are many platforms which do this very thing. I've done it in the past but the ROI takes a long time; something I really wasn't willing to wait on.

 

[Sariana23]

I made loans for some time and earned interest. It is good because people when they are responsible as much as they can return the capital, which generates profits, but they must only be responsible people and this can create enmities when you do not give in to irresponsible people.

 

[Chris]

Sure! It will be a creative business to look into, you'll make huge pofit from it, however we cannot neglect some factors to consider when going into giving out loans if we ever think of going into that line of business or are already in it.

One of such should be your target market, the kind of people you want to lend money to, will they be willing to pay back.

Income/employment history: as a lender you have to consider the income of your customer to know is he/she will be able to pay back such loan.

 

[mcjerry]

There are many companies that are lending loans now. They are lots of them using either website or app.

it is profitable but at the same time it involves risk. There are some people that will borrow but won't pay back. So as for me, I don't like the business

 

[Sariana23]

There are many companies that are lending loans now. They are lots of them using either website or app.

it is profitable but at the same time it involves risk. There are some people that will borrow but won't pay back. So as for me, I don't like the business

Making loans online I do not recommend it, from my experience it was not totally pleasant because of irresponsible people I know, online is more risky because you do not know to whom the loan will be granted and therefore the guarantees are minimal for the repayment of the money.

 

[eLdavis]

It is quit true that there is profit to be made From giving out loan. There is a man in my area who recently build a house for rent. I dont know how true, but a lot of persons look people that are into giving out loans are not completely running the business legitimately

 

[Sincerem]

To run an online loan initiative, you need to develop a website and an app for it. Its not easy at all, you spend money to buy automated softwares, bots that will help to secure the profile of those taking loans from your company. Proper KYC verification software machine need to be implemented also, for you to be safe with lending out your hard earned money to individuals.

 

[jkk]

Making money by lending loans has gained popularity over the years. Low volatility, high returns, and regular income, are some of the reasons why this method has emerged as an alternative investment choice. It is an effective way to multiply your savings.

 

[Justin]

In my home country some private lenders can charge up to 36 percent interest per year, the highest interest a bank charges is 17 percent. Some small banks charge up to 24 percent.

 

[Nurudeen]

Giving loans is one of the best ways to make money online. However, giving out loans come with a very big risk because a lot of people won't want to pay at some point

 

[Richard92]

Giving loans is one of the best ways to make money online. However, giving out loans come with a very big risk because a lot of people won't want to pay at some point

Most people make money by lending and giving loan astrologer microfinance bank most times when you give you alone because of their additional interest to eat you tend to make some money.

 

[tyrim88]

There are new businesses springing up this year. Many of them are also looking for ways they can generate capital for the business to grow.

This makes it possible for one that is creative to setup up a loan scheme where you get to lend money to these businesses while you make interest on loans given at the completion of the loan. Have you thought about this method of making money?

This is a very good idea.But the act of establishing a financial lending facility to customers that needs those services,you need to really put your feet down to be able to succeed in this type of venture.You need to have a strong recovery mechanism to be able to tacle the issue of laon defaulters,as you will meet a lot of persons on this sector.

 

[Setho]

Right now there are a lot of mobile applications out there that are open for people to invest their money like this so that you can lend it out to other people.

 

[Thinker009]

This method could be risk except been done in a legal process , because some people are debtors and they might refuse to pay up the balance they are owing you after you have asked them to pay for so many days

 

[Senator]

I will not ever give a thought to setting up such type of business scheme of giving out loans for any reason as that is not my thing or field of business interest for so many reasons

 

[kayode10]

You make money from the interest you give out to other people. This is one of the ways in which the banks and credit lending institution make most of their money. You need to include attorney in your team if you don't want people to abscond with your money.

 

[akinlolu99]

Well making money by lending money either on large scale or in small scale is not really easy because you have to be careful of the person and the kind of person, not just that but the business the person wants to run with the funds and the most important part of the business is how the person plans to pay back because the business you run is a long sort of business and if you not careful one could incur loss

 

[Yusuf1]

This is a good investment idea from you. However, a lot of people will collect the loan without having the intention of returning the loan back to the company and that is why I don't like the business

 

[Razor1911]

This is a good investment idea from you. However, a lot of people will collect the loan without having the intention of returning the loan back to the company and that is why I don't like the business

There's a solution for it too. You need to take some security for providing the loan. Some sort of ornaments having equal value will do. Otherwise it will be hard to differentiate between a good borrower and culprits.