PEER-TO-PEER LENDING
What is Peer-to-peer lending? Peer-to-peer Lending (P2P Lending) also known as social lending , is a new type of financing which allow people to lend and borrow money without intermediary like financial institutions. P2P grew by leaps and bounds after 2008 financial crisis when people are skeptical of financial institution. Compare with normal intermediary such as bank or stock market, P2P has less fluctuation, cheaper fees and offer higher returns. How does p2p lending work? All processes of the P2P lending are made through online platform. The borrowers and lenders can make a direct transaction without any institutions. ➣ The general process of p2p lending be like: The borrower must complete the online application in P2P platform, which will check the borrowers’ credit and determine their eligibility as a “loan grade” for the lender The borrowers are assigned to their appreciated interest rate When the applications is approved, the borrowers will