Peer To Peer
P2P lending connects borrowers with individual lenders through an online platform. Borrowers can secure loans from individuals rather than banks, while lenders can earn interest by funding these loans.
Key Features
- Direct Transactions: Borrowers obtain loans directly from individual lenders, while lenders invest in these loans.
- Online Platforms: Transactions are facilitated through online platforms that manage applications, approvals, and payments.
- Flexible Loan Terms: Customizable loan amounts, interest rates, and repayment terms are available.
- Risk Assessment: Platforms assess borrower creditworthiness and offer options for diversification to reduce risk for lenders.
- Competitive Interest Rates: Borrowers may receive lower rates compared to traditional banks, and lenders can earn higher returns on their investments.
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