Peer to Peer Lending (P2P Lending, Social Lending) is a new and exciting way to borrow money online. It’s a great alternative to signature loans or credit card loans.You borrow money directly from other people. Also, for those of you who prefer to be a lender, you can make loans directly to people who need to borrow it.There are no banks involved in these types of loans. People who want to borrower have the opportunity to obtain loans at interest rates that are likely to be more favorable than they might otherwise obtain from a traditional lending institution or credit card company.Those people looking to lend money may potentially earn more money than they normally would by keeping their money in a traditional investments. Those people looking to lend money can receiving high interest rates from the borrowers they choose themselves.
Peer-to-Peer Lending Comparison
|Peer to Peer Loan Types:|
|Peer to Peer Loan Amounts:|
|Personal Loan Maximums||$25,000|
|Business Loan Maximums||$25,000|
|Peer to Peer Credit Qualifications:|
|Minimum Credit Score||660|
|Maximum Debt-to-Income Ratio||None|
|Rates & Terms for Peer to Peer Loans:|
|Borrower Interest Rates||6.69 – 19.37%|
|Borrower Loan Term||3 Years|
|Secondary Market for Oeer to Peer Lenders:|
|P2P Loan Buying|
|P2P Loan Selling|
|P2P Loan Trading Fee||1.00%|
|Peer to Peer Loan Fees:|
|Origination Fee (Added to Loan Amount)||0.75 – 3.00%|
|Failed Payment Fees||$15|
|Late Payment Fees||$15 or 5% of payment due|
|Early Payment Penalties||None|
|Peer to Peer Lending Fees:|
|Payment Servicing Fee (Charged to P2P Lenders Only, Not Borrowers)||1.00% of payments|
Do you want to know more about peer to peer lending sites?
Do you want to know more about peer to peer lending sites? You can learn more about this type of lending by visiting various social lending websites. Fo tho the sites and get more in-depth information about how these websites work. Typically, if your credit score is good or better, then you are almost certainly better off using a peer-to-peer lending site instead of a bad credit lender (i.e. payday loans and signature loans).
The information contained here is from one of the leading peer to peer lending websites. The data was current as of 10/31/08. Rates & fees are variable, in some instances, and are not APR calculations. Peer to peer lending is a great alternative to trying to obtain your bank Signature Loan.