Lending money to your neighbors that is managed with technology is the latest trend in finance.
Loans like this belong to a new financial community called Peer to Peer lending. Or commonly called P2P.
The most common P2P companies are Prosper and lending Club.
Compare the 2 companies here in this review.
What Is Peer 2 Peer Lending?
This system has many benefits and is the easiest to apply for. Borrowers can only apply for this type of loan online and do not have to provide collateral because it is an unsecured loan.
The lending companies sets the interest rates according to the borrowers credit score. Currently the lowest score accepted is 640.
Lenders look closely at borrowers and are assessed according to the pay back risks they pose. Borrowers that do pose a failure to repay risk, those borrowers Prosper sets a higher interest rate.
Lenders select the borrowers they want to lend money to and consider the loan as an investment.
While peer to peer lending is new concept in personal loans, many people have already found it to be the best way to borrow money without the hassles and stress of traditional lenders.
When you stop to think about the things you could do with you loan, spending the weekend riding your new motor bike, or sailing in your new boat or other exciting things like holidays and travel.
Getting Finance Is Easy With Community Lending
Imagine the feeling you have when you are on your way home with a brand new motor bike. Getting the money you need for a bike without worrying about pressuring details you would get when dealing with at a bank is a good feeling.
Related: Prosper Loans Investing – Be Your Own Bank And Lend Your Money For Interest
Applying for a P2P loan is as easy as visiting the Prosper website. Being able to apply online means you can do so from the comfort of your home and without the pressure of loan officers and other banking personnel.
Many people find financial professionals intimidating and feel embarrassed because of credit issues. Applying online can be stress free and even exciting.
How They Are Investing In Your Community
P2P loans are not covered by government guarantees or the FDIC. Lenders investments as a peer to per loan are done so with the consideration of returns on that investment through interest rates.
Prosper, that matches lenders and borrowers usually ask for a one time, set flat fee for their services. Fees are generally affordable due to the lack of brick and mortar overhead online financial companies are responsible for.
Many investors have found this type of investment market less volatile than the stock market and less pressuring as well.
Think Of The Benefits Of Using The Community
When you stop to think about the things you could do with you loan, spending the weekend riding your new motor bike, or sailing in your new boat or other exciting things like holidays and travel. This is all possible without the kinds of strings attached and high interest, that come along with traditional lending. With all these things combined, you can see why peer to peer lending has become more popular and attractive.
Whether you just want a bike, a boat or a car to take out on weekends for relaxation or you need one for daily transportation, the process you go through for financing does not have to be an unpleasant experience.
Checking out sites like Prosper and Lending Hub is a good idea for making your personal dream of ownership a reality.