P2P lending platforms

P2P lending platforms are gaining momentum because of the lending experience they offer: it is simply much easier and there is much more flexibility when it comes to risky profiles a.k.a "P2P Loans for Bad Credit".

There are advantages and disadvantages of the practice on both the lender and borrower sides which are described below. There is also a list of the world's largest and most popular p2p lending platforms and alternatives including cryptocurrency based P2P Lending.

P2P lending platforms

P2P lending platforms: what you need to know

P2P lending platforms

P2P lending platforms: How

p2p crowdfunding platforms are as popular as ever! However, there is some confusion as what it is that they offer and for who. If one searches for the term "p2p lending sites" or "p2p lending platforms" you may find information on sites for borrowing, lending, sites only available in countries far away from a person's location and so on. Hence the need for some clarification:

p2p lending platforms: the many kinds that exist

As p2p lending becomes a viable alternative to bank loans and, as a result, a real threat to the traditional banking system, the industry is still young as defining its niches and terminologies that describe itself. The confusion is normal at this stage, but here are some pointers:

  • P2P Lending for Businesses (borrowing side)
    These platforms lend money directly to businesses that need cashflow. Typically, they cost less than P2P lending sites for private individuals.
  • P2P Lending for Individuals (borrowing side)
    These platforms are perfect for people needing quick cash with fewer restrictions for bad credit, but users can to prove their ability to repay their loans in other ways such as by building their reputation in the system which may take some time.
  • P2P Lending for Business (lending side)
    These platforms are for the people that want to supplement their income by lending money to businesses in need of cashflow. They are usually less risky than P2P lending for individuals but offer fewer opportunities for high returns.
  • P2P Lending for individuals (borrowing side)
    These platforms are for individuals needing money for private use of any kind (which could be used in businesses). The costs associated with these can be similar to banks but with less hassle.

P2P lending platforms: how to select one that makes sense to you

  • Low interest rates
    Interest rates in P2P lending sites change between countries, loan types and your reputation/credit worthiness. Be careful with the rates as they may be confusing even if you read p2p lending platform reviews out there claiming low rates.
  • Ease of approval
    This is a complicated topic as because "ease" can mean many things such as no credit checks, bad credit approvals, short term p2p loans and fast approvals. It all depends on your needs and that is why a person must investigate carefully.
  • Accessibility
    Make sure that the platforms is both something that matches your needs, ability to prove your worthiness and location. In other words, the p2p lending platforms for you are the ones that you can get approved, in your country of residence/origin and that you can prove your ability to repay.
  • Speed of approval
    Speed is a factor. You can get approved in 24 hours in some situations and i na week in others. Make sure you check details and spend some time reading the materials on each lender's website.

P2P lending platforms: how to get approved

  • Have your documentation ready. Include identification documents, proof of credit worthiness and history, social media accounts if necessary, proof of address and so on.
  • Apply at the right company for the right loan type according to your credentials and matching criteria. Make sure you read the terms & conditions of the loan. Email the company if you have any doubts regarding the loan.
  • Do not waste your time on platforms you know you won't get approved if the minimum requirements aren't simply going to match. For example, don't try to apply for loans in American companies if you are a resident of Europe and vice-versa. The systems are completely different and it is illegal for companies to offers loans.
  • Do not try to modify documents. There are clever people and software verifying the authenticity of your documentation in all peer-to-peer loan platforms in the US, Europe and all over Asia including India, Singapore, Japan and China.

P2P lending platforms

P2P lending platforms: List

  • Upstart | USA | Multi-use
    A company founded by former Google employees and one of the best peer-to-peer lending platforms in the US, this a a good option for a variety of reasons most importantly because of how one gets approved. With Upstart, a loan is evaluated according to factors going beyond your credit history, such as school of graduation, academic performance, area of study and work history. Loans are anywhere between 3k and 35k with APR as low as 4.7%. Loans can be used for most things such as student loans, buying a car or payment of medical bills. This is a particularly popular option for people with limited credit history such as those between 20 and 30 years of age.

  • Funding Circle | US/UK Focus | Small Businesses
    Funding Circle was created to facilitate the funding of small businesses as traditional loans with banks have grown more and more bureaucratic and complicated. In fact, the founders were rejected 96 times for their own startup loan and that is why they decided to create Funding Circle! It has proven to be a tremendous success with over 1 billion dollars of loans dished out to over 8000 business all ver the world. There are over 40 thousand businesses, individuals and institutions lending money to people via Funding Circle.

  • Prosper | US/UK | Small Businesses
    This is one of the world's first ever P2P marketplaces and it has grown a lot with over 250 thousand users and billions of dollars in loans. It has offers for debt consolidation, home improvement, baby/adoption, military and even engagement rings. Loans start at 2k and can go as high as 35k with 3-5 year terms. Interest will vary between 6% and 36%. Investors can lend as little as 25 dollars!

  • Circleback US | Multi-use
    Circleback has 3-5 year loans ranging between 3k and 35k and APR of 6.6% to 36% but the rates will depend on credit history, amount, tenure and other factors. This is a great platform for people with decent credit and need loans that are in 5 digits. You can take out a loan for many purposes: credit card refinancing, credit consolidation, home improvement, auto loans and many more options.

  • Peerform | US | Multi-use
    Peerform is the brainchild of a feel Was Street executives and it is very popular in the USA. It focuses on 3 year loans between 1k and 25k with APR of 7% to 30% more or less. It utilizes FICO score in combination with other proprietary factors they call the Peerform Loan Analyzer that enable people with credit of 600 to get approved. Loans can be used for credit consolidation, medical bills, moving, vehicle financing and many others.

  • SoFi | US | Multi-use
    It started in 2011 and it is a popular name in the world of P2P lending. SoFi focused on young professionals looking to start their companies, pay mortgages and student loans. It has helped people with over 4 billion dollars in loans with strict requirements making a more exclusive club albeit with lower interest rates. Prospects have their employment history probed, financial history, income and expenses reports, experience and even school grades. Loans can go as high as 100k. They offer MBA loans, student loan refinancing, mortgages, parent loans and a few others.

  • Mintos | EU | Multi-use
    Offering loans from people of multiple countries to people in multiple countries, Mintos is a good option for Europeans. It comes with an interface that is super easy to use and a portfolio manager for lenders that is also great. A lot of the loans are protexted by a buyback guarantee, and all loans have collateral on them such as a car or property.

  • Bondora | EU |
    Bondora is one of Europe's largest platforms and it works everyone in the continent. Loan amounts range between 500 euros to 100k. Repayment period: 3 to 60 months and APR from ˜19% to ˜56%. The rate you are offered will depend on your individual circumstances. It claims full transparency (all loan data is public) and it has a solid 10 year track record in the business. It issues loans for people in Finland, Spain and Estonia. For investors it is excellent because it has a system that lends money automatically with preset levels of risk. It is not perfect: it has no buyback guarantee so there is more risk and there is no "manual" investment.

  • Lendy | UK | Real Estate use
    Lendy is different because all loans are related to real estate projects, such as construction, buying land and renovations. It is a popular option: Lendy has nearly 400 million euros in loans and 20 thousand users all over the UK. To find out rates, it is best to call or email them (according to their site). Regarding investors, they can make as much as 12% return per annum and investors is semi-automatic.

  • Twino | EU | Multi-use | For Investors Only
    Based in Latvia and offering a buyback guarantee on most loans. Twino has been on the market since 2012 and it claims 11% return per annum. It is safe and most loans that are approved are for people in the continental EU. The company is privately owned and it is profitable with no currency risk.

  • Zopa | UK | Private use
    Zopa is a popular (one of the pioneers) in P2P lending for the UK market, offering loans between 1k and 25k and 1-5 year repayment. You can use loans to buy a car, pay credit cards, consolidate debts and many other purposes. With rates as low as 4.75% per annum it has some of the country's lowest rates but it also has a high threshold for approvals. It also means that - for borrowers - returns are more modest.

Peer to peer lending platforms in india

Here are the best P2P lending platforms in India:

P2p lending platform Asia

Here are the best P2P lending platforms in Asia:

P2P lending platforms

P2P lending platforms: Alternatives

The best alternatives for P2P Lending sites are BTC lending communities for lenders and borrowers or loans with friends even for loans for bad credit. These can be tricky (for loans from private lenders), with cryptocurrency seen as a risky alternative by many (which is untrue) and with with friends being a risky and possibly embarrassing way of dealing with money.

Further reading


Bitcoin Lending

Bitcoin lending can be a channel for a steady passive income stream. The best way to understand how a person can make BTC lending work is seeing the parallel with the real estate market: investors buy real estate and rent properties out; so can investors buy bitcoin and "rent them out" too.