An alternative to traditional lenders has emerged in peer-to-peer (P2P) lending in the last decade. Listed here is a rundown on what loan providers like Lending Club and Prosper work. Peer-to-peer financing services set would-be borrowers with investors ready to issue loans. You can easily consider them as being a economic counterpart to eBay, except you, the debtor, won’t ever deal directly with all the investor; the P2P solution handles most of the deals, from determining loan eligibility to setting prices and fees, to processing re payments.
P2P loan providers’ primary appeal for borrowers is leaner rates of interest than are generally available through old-fashioned loan providers like banking institutions or credit unions. Continue reading