who are the leaders in peer to peer lending?”
Peer to Peer Lending or P2P Lending as it is commonly known is the latest way to borrow money. In this type of transaction, money is borrowed directly from other people, online. This is a great way to transact, especially for people who want to lend money to make loans directly available to other people who need to borrow. In this type of lending, there are no banks or financial institutions involved. Hence, borrowers have the chance to receive interest rates that are favorable than what they might have got if they had followed the traditional way of lending, via a financial institution. How this system works is pretty simple. The marketplace (internet) enables the “peer leaders” to locate the “peer borrowers” and vice-versa. This type of P2P model connects the borrowers with the lenders through some sort of auction like process, in much the same way as eBay or Amazon does. In this type of dealing, the lender who is willing to provide the lowest interest rate wins the borrower. Apart f
Hard Money Lending Via the Internet It is common knowledge that banks make huge profits on the margin between the interest rates they charge borrowers and the rates they offer to savings account holders. The sheer size of these institutions allows them to easily diversify among a huge pool of borrowers and account holders, and they have historically had a monopoly on the lending market. Prosper.com, the first major person-to-person lending service in the U.S., intends to change all that by connecting small-time lenders directly with borrowers. Many investors were intrigued by the idea of replacing banks in the lending equation. “It was a very interesting idea to me,” Kevin Gillett, a Prosper lender and the author of www.rateladder.com, said. “I love the idea of cutting the banks out of the picture.” Prosper “basically allows me to be the bank, which I really like,” said a Prosper lend
