Peer-to-Peer (P2P) Lending
Platforms matching individual borrowers and lenders directly online.
Detailed Description
Peer-to-Peer (P2P) Lending
What is the main advantage of P2P lending for borrowers?
The main advantage for borrowers is often lower interest rates and more flexible terms compared to traditional banks.
How do P2P lending platforms assess borrower risk?
P2P platforms assess borrower risk using algorithms that analyze factors like credit scores, income levels, and repayment history.
What are some well-known P2P lending platforms?
Some well-known P2P lending platforms include LendingClub, Prosper, and Upstart.
What risks do lenders face in P2P lending?
Lenders face the risk of borrower default, which can lead to financial losses, as well as potential fees from the P2P platform.
How does P2P lending differ from traditional lending?
P2P lending differs from traditional lending by using alternative data for quicker assessments and involving fewer intermediaries, leading to lower costs for borrowers.