The Benefits of Peer-to-Peer Lending

In recent years, Peer-to-peer lending has grown in popularity. Peer-to-peer lending involves borrowing money from regular people that are willing to offer a loan. There are a few advantages offered with Peer-to-peer lending:

Avoid the Banks

One of the best things about peer-to-peer lending is that you can avoid banks completely. Dealing with banks can be stressful because they view you as a number, instead of a person. Also, they do not care about your individual needs. As long as they keep their portfolio of customers, they will be fine. An individual lender does not have a huge list of people that borrow money from them. They might deal with one or two people, which allows them to be flexible and genuine. You can deal with a real person instead of a big, faceless corporation.

Cheaper Interest Rates

If you have good credit, you should be able to get a peer-to-peer loan at a cheaper rate than you could at a bank. Banks have many employees and a lot of overhead involved with their day-to-day operations. They make up for that overhead by charging more for their interest rates. Individuals do not have overhead. They can decide on their own what they want to charge and can therefore save you money. Many peer-to-peer sites are set up as auction sites. Therefore, as a lender, you put up a profile with your loan needs and people bid on you. During the bidding process, your interest rate can be bought down through bidding. This can save you money and make your life a lot easier.


With peer-to-peer lending, you can set the financing terms directly from the comfort of your own home. You simply get on your computer and visit one of the many peer-to-peer lending sites on the internet. You can set up a profile and receive several offers from individual lenders in a very short period of time. The peer-to-peer site will take the responsibility of checking your credit and preparing a summary for the lenders. If someone lends you money, the process will go very quickly. There a few websites you can visit, like:


Many times, the money will be deposited directly into your bank account after you win the auction. When it is time for the first payment, the peer-to-peer site will deduct the payment from your bank account. You don't have to write any checks nor do any extra leg work. Everything is taken care of by the site and they are rewarded for their work with a small  percentage of the transaction. Compared to using a bank, the transaction fee is a small price to pay for the service and convenience that you receive. You can get your money quickly and easily with this method.

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