A new genre of lending and borrowing has come as a messiah for several entrepreneurs and business start-ups everywhere.
It is called P2P or peer-to-peer lending, where the borrower takes a loan from an individual rather than a lending institution. This is fast becoming a preferred mode of borrowing money as it commands greater efficiency, lower interest rates, and virtually no running around!
The top four reasons why people borrow loans from such individuals are to pay off credit card loans, for home improvement, for business, and for a major purchase. Statistics show that people can get a P2P loan for anything, from debt consolidation, to starting off a business, to buying a car, or even to pay for school.
Borrowers can look to get anywhere between $1,000 and $25,000. However, as with traditional loans, the borrower’s credit score determines how high or low the interest rate will be.
If you are a small business or know of someone who is not making headway with their project for lack of funding, a P2P loan may just perhaps save the day for them!