Are Peer-to-Peer Loans a Good Solution?

 

After the financial meltdown, lending guidelines tightened, paving the way for peer-to-peer (P2P) lending—a new product that offers consumers personal loans at competitive interest rates.

One primary difference between P2P lending and traditional loans is the lenders; P2P loans are backed by a pool of everyday investors—or peers—instead of financial institutions. The lending companies act as the middlemen between the investors and the borrowers.

Continue reading