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

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

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

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

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

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

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

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