Is Peer-to-Peer Investing Safe?

Investing, by its very nature, involves some level of risk. This is particularly true for peer-to-peer (P2P) investing, where the security of an investment largely depends on the platform chosen. To ensure that hard-earned money is placed in reliable hands, it’s crucial to have a thorough understanding of how P2P lending and borrowing operate.

Investing money is not a simple task. It demands extensive research, consultations with financial experts, and considerable decision-making. Additionally, investors must ensure their investments are secure, aiming for minimal losses while awaiting returns on investment (ROI), which can take time.

Risk Minimization Measures

Blend PH implements several measures to minimize risk for their investors. Lenders on the platform are provided with top-notch service because they play a crucial role in facilitating loans for borrowers. Blend PH’s team meticulously evaluates borrower applications, which is why the loan approval process can be lengthy. They verify all documents and ensure only quality and responsible borrowers are approved. Furthermore, the team manages collections and works closely with the legal team to enforce agreed repayment schemes.

Stringent Credit Evaluation

Blend PH patterns its credit evaluation process after banks, adhering to strict rules while utilizing a bespoke, technologically advanced system. This system qualifies borrowers on the platform, enabling a faster online sign-up and application process, often leading to quicker loan approvals for eligible applicants.

Minimum Risk Acceptance Criteria

All loan applications on Blend PH are subject to minimum risk acceptance criteria. The qualification process considers factors such as annual income, employment status or income source, age, civil status, and dependents. Applicants who do not meet these criteria are not permitted to proceed or request funding on the platform.

Validation and Verification of Requirements

When borrowers sign up and apply for a loan, they must provide various supporting documents. Blend PH’s team manually validates and verifies this information, cross-checking the details provided during the sign-up process. Critical information, such as the borrower’s place of employment and residential address, is thoroughly verified.

Risk Tags and Diversification

Investors can diversify their lending portfolios on Blend PH, which spreads investments across different borrowers with varying risk tags. Risk tags are based on a borrower’s credit score and repayment capability. For instance, a borrower with a good credit score and no defaults would have a lower risk tag, while a borrower with a history of late payments but who has settled their debts would have a higher risk tag.

Lenders can choose to invest in high-risk or low-risk borrowers, expecting different levels of returns. High-risk borrowers can offer higher earnings, whereas low-risk borrowers typically provide average ROI. Investing in loans with multiple risk levels can result in a more stable income, effectively scattering and minimizing risk.


The P2P process on Blend PH is designed to be safe, with numerous safeguards and stringent procedures in place. However, as with any lending or investment vehicle, a certain amount of risk is inherent. It is advisable to start by investing in smaller loans and allowing the investment to mature to achieve stability. Potential investors should take the time to study their options, seek advice, and consider various perspectives before making decisions.

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