Peer to Peer Lending: Is It Right For You?

dave — Tue, 25 Aug 2009 03:11:41 +0000

Many today, whether looking to lend or looking for a loan, are increasingly turning toward peer to peer lending as their financial solution. With peer to peer lending (or person to person/social lending), you lend to or borrow from a person or group of people directly without the need of an intermediary financial institution. Lending Club and Prosper.com are just two examples of online websites that help facilitate peer to peer lending between individuals. Another example of social or P2P lending is where you might borrow directly from a friend or relative.

One obvious advantage of peer to peer lending transactions is if you’re having problems getting a traditional bank loan, typically you will have much less of a problem securing a P2P loan, often at a lower interest rate.

With peer to peer lending, you can also invest your money in diverse investment loans earning higher returns on your investment than by more traditional means. Returns as high as 9.5% are not uncommon.

For more information on peer to peer lending to see if it’s right for you, try these links:

Loans Online - News - Resources » online loans

Peer to Peer Lending: Is It Right For You?