In its basic form, p2p lending can be something as simple as providing a loan to a friend in need. The peers in this case are you – the lender and your friend.<\/p>\n\n\n\n
The borrowers and lending activities in this case don’t involve a bank or financial institution. Hence peer-to-peer lending simply means lending amongst peers.<\/p>\n\n\n\n
We’ll look at what peer-to-peer lending is and how it works.<\/p>\n\n\n\n\n\n
Peer-to-peer lending is a way of lending or borrowing money<\/a> that does not involve a bank or financial institution. <\/p>\n\n\n\n In its organized form, it occurs online on a website that connects investors looking to lend out money to borrowers looking for loans.<\/p>\n\n\n When you lend out money to a friend in need, you have engaged in peer-to-peer lending. The peers in this case are you – the lender and your friend – the borrower. This activity occurs in a more organized, rewarding, and complex form online.\u00a0<\/p><\/div>\n\n\n P2p lending, also known as social lending, marketplace lending, or crowd lending also enables small businesses to obtain unsecured loans<\/a> from investors without going through a bank.<\/p>\n\n\n\n Peer-to-peer lending is based on a crowd-funding model that aims to incentivize savers with higher interests (when they lend out money) and borrowers with unsecured personal loans<\/a> that offer comparatively better rates.<\/p>\n\n\n\n P2p lending – in its organized form – has been around since 2005. Some of the biggest p2p lending platforms include Prosper<\/a>, Lending Club<\/a>, and Upstart<\/a>.<\/p>\n\n\n\n Peer-to-peer lending platforms are built around a single premise: to match lenders directly with borrowers. <\/p>\n\n\n\n A p2p lending website serves as a bridge linking lenders and borrowers.\u00a0<\/p>\n\n\n\n Here\u2019s how it works:\u00a0<\/p>\n\n\n\nHow Peer-to-Peer Lending Works<\/strong><\/h2>\n\n\n\n