Peer-to-Peer Lending

Peer to Peer Lending (P2P Lending) is a new concept bringing borrowers and lenders together outside of the traditional vehicle of commercial banks. I has been brought to life by the power of the internet, power of numbers, and the ability for diversification of risk.

Peer-to-Peer lending (P2P Lending) is also referred to as Social Lending. Most concepts introduce the positive social impact of helping borrowers in need and in-turn helping lenders obtain desired rate of return (return on investment or ROI) on their investments.

Since there are no banks involved, borrowers have the chance to receive interest rates that are more favorable than they might otherwise get from their traditional lending institution or credit card company - and lenders can potentially make more than they normally would by keeping their funds in a traditional investment, by receiving higher rates of interest, directly from the borrowers they choose themselves.