What is Peer-to-Peer (P2P) Lending?

Adekunle Joshua

It's a digital lending system that connects borrowers and lenders directly, bypassing traditional banks

Individuals and businesses seeking loans create listings on P2P platforms. Investors analyze these listings, choosing to fund them based on risk and returns

P2P platforms streamline loan processes and pair borrowers and lenders. Loans can fund debt consolidation, small businesses, education, and personal needs

P2P platforms operate within legal regulations. Compliance varies by country, emphasizing borrower and investor protection

Examples of P2P platforms include LendingClub and Zopa. They connect borrowers and investors in the U.S. and UK, respectively

AaveAave is a decentralized P2P lending platform on Ethereum. Users can lend and borrow cryptocurrencies with rates determined by supply and demand.

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