The global financial crisis of 2008 witnessed the emergence of peer to peer lending structures. With Zopa taking the lead, proponents of such platforms can now be found on UK.collected.reviews engaging the public.

Peer to peer lending initiatives cut interest rates whenever you save. They are also more of the consumer to consumer saving and lending platforms opportunities.

As the world is into another financial retrogression due to the COVID-19 pandemic, you can manage your financial life through loans. Peer to peer lending reviews work well for every set of people, and you may want to know more about it.

Peer to Peer Lending

This is a system that allows an individual investor to lend a loan to an individual borrower. It is an alternative to traditional credit unions. It is a simple platform where investors and borrowers are connected. An investor is easily connected with a borrower, and the platform only earns its benefits from the minimal rate involved in the transaction.

There are different types of peer to peer loans. The main three types are:

1.    Personal Peer to Peer Loans:

This kind of loan includes car purchase, medical bill, home improvement loan, debt consolidation loan, vacation loan, and a few other kinds of loans for capital activities.

2.    Education Peer to Peer Loans:

This involves a loan to fund academic activities. If you need to continue your education to the Masters or PhD level, and you’re unable to raise the funds for it, you can get a lump sum of money from an investor through the platform.

3.    Business Peer to Peer Loans:

This involves a loan to promote your business enterprise. You can even use the loan to launch your product or invest more in campaigns that can expand your business network and net worth.

Examples of Peer to Peer Lending Platforms

1.    Upstart:

This is a lending platform that was established in 2012. It is a popular platform for many people who like the slogan, “You are more than your credit score.” By implication, it is a platform for those who couldn’t get a loan because they have a low credit score or low credit history.

2.    Prosper:

This is another peer to peer lending platform which has been in existence since 2005. With its claim to have a secure loan of well over 17 billion US dollars, it is a platform that mostly facilitates personal peer to peer loans.

3.    SoFi:

This is the short form of ‘Social Finance’. It is a platform that offers different types of loans to people. You can even get loans in the form of stocks, crypto, Exchange-traded funds (ETFs), and other forms of income. It mostly offers educational peer to peer loans.

4.    Funding Circle:

This is another peer to peer platform mostly for entrepreneurs. It boasts of about 24 hours of credit for borrowers.

5.    Lending Club:

With its history traced to 2007, it has offered billions of Euro to borrowers around the world. This system of financial exchange and borrowing has been helpful to millions of people with different financial needs.

These peer to peer lending platforms are used to promote the financial prowess of financially desperate individuals.