What Is Peer-To-Peer (P2P) Lending?

Adekunle Joshua

Peer-to-peer (P2P) lending, also known as marketplace lending, connects lenders and borrowers directly through online platforms, bypassing banks

With P2P lending, borrowers can create loan listings on the platform, specifying the amount they need and their loan terms

Investors can then evaluate these listings and choose to fund them based on their risk tolerance and expected returns

P2P lending platforms act as intermediaries, streamlining the loan application, credit evaluation, and loan servicing processes

They utilize technology to enhance user experience and facilitate matches between lenders and borrowers

P2P loans can be utilized for various purposes, including debt consolidation, small business funding, educational expenses, and personal loans

P2P lending platforms adhere to country-specific laws to ensure borrower and investor safeguards.