P2P
P2P Lending: A Modern Way to Invest and Borrow
Peer-to-Peer (P2P) lending is a financial model that connects borrowers directly with individual lenders through an online platform, eliminating the need for traditional financial institutions like banks. It is a growing alternative lending system that allows investors to fund loans and earn returns while offering borrowers a more flexible, often cheaper borrowing option.
Unlike traditional banks, P2P lending platforms act as intermediaries, facilitating the loan agreement between lenders (investors) and borrowers. Borrowers can access loans for personal or business purposes, while investors can diversify their portfolios by lending money to individuals or small businesses in exchange for interest payments.
Why Choose P2P Lending?
For investors, P2P lending offers higher returns compared to traditional investments such as savings accounts, fixed deposits, or government bonds.