Peer to peer lending, also known as person to person lending or P2P lending, is an excellent alternative to traditional bank loans and government loans. With this form of lending, you can borrow money directly from friends, family members or even strangers.
Initially the concept of peer to peer lending was used for funding micro loans for entrepreneur in developing nations to start business. However, with changing times P2P loans have became a common practice among students pursuing higher education, petty businessman and housewives.
Banks have more overhead costs than your friend or family member hence the interest rate charge by banks is more than that of friend or family member. In peer to peer lending, banks are totally kept away from the whole process as a result a big amount is saved as an interest on the borrowed money because the interest rate charged by family member or a friend is much lower than that of bank.
With the cost of college tuition rising every year peer to peer lending is an excellent option for students who are in need of money for pursuing higher education. In P2P lending system lenders charges interests rate based on the attractiveness of student's profile and GPA. If the student has high GPA and is pursuing education in lucrative field, then the rate of interest charged by lender is much lower than that of student with low GPA and pursuing education in less lucrative field.
The peer to peer lending market is growing rapidly Some of the companies in the US that are involved in peer to peer to lending are Prosper.com, Lending Club, Fynanz Loans, Green Note Loans and Virgin Money USA.
Initially the concept of peer to peer lending was used for funding micro loans for entrepreneur in developing nations to start business. However, with changing times P2P loans have became a common practice among students pursuing higher education, petty businessman and housewives.
Banks have more overhead costs than your friend or family member hence the interest rate charge by banks is more than that of friend or family member. In peer to peer lending, banks are totally kept away from the whole process as a result a big amount is saved as an interest on the borrowed money because the interest rate charged by family member or a friend is much lower than that of bank.
With the cost of college tuition rising every year peer to peer lending is an excellent option for students who are in need of money for pursuing higher education. In P2P lending system lenders charges interests rate based on the attractiveness of student's profile and GPA. If the student has high GPA and is pursuing education in lucrative field, then the rate of interest charged by lender is much lower than that of student with low GPA and pursuing education in less lucrative field.
The peer to peer lending market is growing rapidly Some of the companies in the US that are involved in peer to peer to lending are Prosper.com, Lending Club, Fynanz Loans, Green Note Loans and Virgin Money USA.
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