What is P2P Lending and Investment Platform & How to get started in Malaysia?

IS P2P LENDING AND INVESTMENT PLATFORM A SCAM???

What is Peer-to-Peer Lending (P2P Lending)?

Peer-to-peer (P2P) lending is a fintech product that regulated by Securities Commission (SC) and possesses a huge potential to address the Small and Medium Enterprise (SME) business loan financing gap in Malaysia. Together with Equity Crowdfunding (ECF), they represent a need for more alternatives in an industry that has so long been dominated by banks. Since Securities Commission (SC) opened the P2P lending license for bidding in May, it received more than 50 applications.

How does it work? 

P2P lending platform connects companies seeking for fund with investors who have available cash for investment. In essence, it works like a normal business loan. Borrowers will issue “investment notes” (hence they are also called “issuers”) and make monthly installments that include principal repayment and interest charges to investors. Charges for the services provided by P2P operators may vary across different platforms.

Contrary to how overseas P2P lending platform is operated, if you are an individual seeking for funds for personal causes, the P2P lending platform in Malaysia will not be a place that serves your purpose.

Many investors begin to diversify their investment portfolios to include P2P lending as an alternative investment due to its investment tenor, lucrative returns and low entry requirement.

P2P Lending Platforms Operators in Malaysia

No.	P2P Lending Platform(s)	Operated by
1	Funding Societies Malaysia	Modalku Ventures Sdn Bhd
2	Fundaztic	Peoplelender Sdn Bhd
3	QuicKash	QuicKash Malaysia Sdn Bhd
4	AlixCo	FBM Crowdtech Sdn Bhd
5	Nusa Kapital	Ethis Kapital Sdn Bhd
6	B2B FinPal	B2B Finpal Sdn Bhd

What happens if an issuer defaults on their repayments?

In case of default, P2P operators are obliged to act in the best interest of investors in dealing with defaulted borrowers to maximize recoveries from the investment notes. Should note issuer fails to pay as promised, investors may initiate legal action against them for recovery.


HOW TO GET STARTED ON P2P LENDING AND INVESTMENT PLATFORM?

You may choose any of the P2P operators listed above or regulated by Securities Commission (SC) and start investment with your comfortable investment amount.

Currently Funding Society - the largest P2P lending platform in Malaysia. is having a referral program and giveaway RM 30 when you sign up by clicking the link below.

*Limited time and T&C Apply

Click here to get FREE RM 30 credit now.

Read More  : 

SC INTRODUCES REGULATORY FRAMEWORK TO FACILITATE PEER-TO-PEER FINANCING


FIRST P2P LENDING DEFAULT, BUT RATE REMAINS LOW

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About Hannah Tan

Hannah Tan is a blogger passionate in the topic Financial Education, Marketing, Empowering Women and last but not least Travelling. "There is no passion to be found playing small - in settling for a life that is less than the one you are capable of living. - Nelson Mandela Stay Connected!