Over the last decade, an alternative method of borrowing has become very popular known as social or peer to peer lending. Individuals and businesses in need san borrow peer to peer loans. The idea p2p platform is that individuals or companies that need to borrow loans are matched up with people who are interested in lending funds. This is a type of lending and borrowing between 'peers' or individuals without a conventional financial organisation like building society or bank being involved. The platforms that provide this service act as intermediaries between the lenders and the borrowers. They offer low-interest rate compared to the traditional loan services, Whether or not this is the case highly depends on some specific factors like an individual's credit rating. The reason behind p2p popularity is that this financial service is cheaper compared to building societies or banks, especially if the borrower has a good credit history without any major issues. Unlike the banks and other mainstream lenders, the majority of peer to peer platforms do not have any minimum loan amount, which gives everyone a chances to borrow loans even if the borrowing amount if little. This is also a great option if people can't get a loan from banks or building societies. But still the chances of getting a loan highly depend on the credit rating of the borrower. Read more about this on our website.
