Guide to Borrowing Money from Peer-to-Peer Lending

Peer-to-peer (P2P) lending is getting popular as you probably heard about Prosper and Lending Club. Here’s a five-minute guide to borrowing money from P2P. “Online-only P2P platforms take money from savers and loan it out to carefully vetted borrowers including ordinary consumers, small businesses and even landlords. By cutting out the middleman such as banks and building societies, they should give savers and borrowers a better rate. P2P platforms still take their cut, but this is lower because they do not have to support large branch networks and thousands of staff.” Once you are into P2P, you need to be aware that it is riskier than deposit the money in the bank as it’s not back by FDIC. (express.co.uk)