Peer to peer loans, also known as P2P loans, are becoming an increasingly popular way for people to borrow money. This type of loan is different from a traditional bank loan because individual borrowers give it to other individual borrowers. This article will discuss the basics of peer-to-peer loans and what you need to know before you decide if this type of loan is right for you.
First, P-to-P loans tend to have lower interest rates than bank loans. This is because there is less overhead involved in peer-to-peer lending since the lenders and borrowers are all people who are connected online.
Additionally, borrowers with bad credit tend to be easier because they are given out based on the borrower’s ability to repay rather than a traditional bank loan that uses your FICO score.
Lastly, peer-to-peer lending allows you more flexibility as an individual lender and borrower because it is not subject to any regulations or laws that govern traditional banking institutions.
So whether you’re considering taking out a loan or want to learn more about this growing industry, give these benefits a second thought!
