Category:Peer-to-peer Loans

Peer-to-peer loans provide a secure way to crowd-source your loan. Most peer-to-peer loan companies will act mostly as an intermediary and enforcer of a loan process between a borrower and his or her prospective investors.

Borrowers pursuing a loan will have their loan information (which can vary from one company to another) posted on a public board, which then becomes visible to the different investors who have registered with the company. These investors can then choose to supply some or all of the requested loan, and are usually free to invest either a very large or very small amount.

The lenders are referred to as investors in this case because not only are they not official loan providers, but also because they are just ordinary people who want to deposit their money in a loan and receive significant interest on it after a specified period of time.

Peer-to-peer loans also provide a stable platform to give friends and family a clear way to help your specific cause, and can be a good alternative to financial gifts if your family situation makes outright giving difficult or impossible.