There are several online marketplaces that offer P2P lending. Once a borrower has identified the type of P2P loan they want to apply for, they need to choose a lending site. Once their application is approved, they need to review the loan terms and interest rate they are being offered.
If the borrower is happy with the terms, they can submit their loan list on the platform and wait for investors to fund it. This is usually the case when a tough credit check is performed. Once the P2P loan is funded, the funds are deposited into the borrower’s bank account and they have to keep up with the agreed scheduled payments.
Popular P2P lenders
The P2P lending industry is becoming increasingly popular. In 2022, the size of the US P2P lending industry will be nearly $938.6 million, according to data IBIS World. The list of P2P lending platforms is always growing, but these 6 lenders currently represent some of the biggest names in the industry:
- peer form
- Lending Club
- Funding Circle (business loans)
Although these are popular websites, always make sure you research all lenders on your radar and look at reviews from reputable sources before applying for a loan. In order to rent something, you must provide confidential and personal information, so you should be sure that you are in good hands.