{"id":2869,"date":"2020-08-28T11:48:14","date_gmt":"2020-08-28T06:18:14","guid":{"rendered":"https:\/\/codelattice.com\/blog\/?p=2869"},"modified":"2021-05-02T17:59:53","modified_gmt":"2021-05-02T12:29:53","slug":"a-complete-guide-to-peer-to-peer-lending","status":"publish","type":"post","link":"https:\/\/www.codelattice.com\/blog\/a-complete-guide-to-peer-to-peer-lending\/","title":{"rendered":"A Complete Guide To Peer-To-Peer Lending"},"content":{"rendered":"

Peer-to-peer lending is quickly becoming a popular way to secure personal and business loans. However, like any investment opportunity, research is king.\u00a0<\/span><\/i><\/p>\n

On the back of <\/span>consumer trust<\/span><\/a> in banks reaching an all-time low, online lending or peer-to-peer lending (P2P) is gaining popularity in Australia. This means that, instead of looking to the big banks for a loan, more and more individuals are choosing an alternative.\u00a0<\/span><\/p>\n

Featuring many different loan types, peer-to-peer lending is a platform that can be used to invest or borrow money. When it comes to anything that involves finances, there are inherent pros and cons. However, in the current climate, this type of service may be beneficial.\u00a0<\/span><\/p>\n

What is peer-to-peer lending?\u00a0<\/span><\/h2>\n

Peer-to-peer lending put simply, is when an individual or business applies and sometimes even bids, for a business or personal loan. These loans are typically provided by investors and facilitated by a third party. In some instances, these third parties are online-based platforms or <\/span>marketplaces<\/span><\/a>.\u00a0<\/span><\/p>\n

Those looking to <\/span>borrow money<\/span><\/a> must first apply through the appropriate platforms. The application process sees potential borrowers vetted in terms of credit and employment history, personal identity, and assets.\u00a0<\/span><\/p>\n

Once the platform approves the individual or company as an ideal borrower, loan applicants are then matched with one (or sometimes more) investors who will be able to fund their loan. Cutting out banks altogether.\u00a0<\/span><\/p>\n

When it comes to P2P lending, investors must choose how much they wish to invest and in some cases, decide what type of loan their money will be used for. Investors will then review the suitable applications before choosing who they will financially support.\u00a0<\/span><\/p>\n

What are the different types of P2P loans?<\/span><\/h2>\n

With several loan types available, it\u2019s important that individuals choose the right loan type in order to meet their repayment needs. When it comes to P2P, there are 4 main loan types:<\/span><\/p>\n