Here It Is, A Suitable Investment for Millennials and Generation Z, Read it Carefully!

TRIBUNBATAM.id - Who says that investment is only for adults who are already established, even have excess funds?

Now, there are also investments that are staying digadang suitable for young people, namely millennial and generation Z (Alpha).

There are many kinds of investments. However, in this technological era, investments are increasingly diverse, one of which is the emergence of Peer to Peer Lending (P2P) investments.  

For millennials, P2P Lending investment is certainly familiar. This investment provides maximum benefits, both for the investor and the borrower.

Although P2P investment in Indonesia has not been as large as in China, the United States, or the United Kingdom, its growth rate is expected to continue to increase over time. 

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The investment work system is not as difficult as imagined. Before investing in this sector, it is better to first identify what P2P investment is like, including its advantages and disadvantages. 

What is P2P Investment?

Peer to Peer Lending (P2P) is an investment that brings investors and borrowers directly. The mediation function that has been carried out by the bank will not be found in P2P investments.

Everyone has the right to apply for loans to investors for various purposes, especially business. But, on condition, the use of funds must be clear so that investors are willing to lend capital to you.

When compared to applying for loans to banks, cooperatives, or other private sectors, the process of applying for loans on the P2P platform is very easy. Requirements are also simple, such as business financial statements and the intended use of funds.  

If the loan application is accepted, you will receive a notification on your P2P account. As a borrower, you are required to pay installments every month, including loan interest.

The amount of interest paid depends on the amount borrowed with what was invested. 

P2P Lending Rated Suitable for Rising Generation

Considering the easy way and also having a lucrative profit, it's no wonder that P2P lending is considered as a suitable investment for young people. Then, what are the advantages and disadvantages of this P2P lending investment?

As quoted from Cermati.com, the following advantages and disadvantages of P2P lending investment that can be a reference material for millennials in investing.