Peer-to-Peer (P2P) Lending
Content
Definition
Peer-to-Peer (P2P) Lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary.
Usage and Context
Peer-to-peer (P2P) lending allows people to lend and borrow money directly without a bank.
Frequently asked questions
- What is the peer-to-peer lending method? Peer-to-peer lending allows individuals to lend and borrow money directly without a financial intermediary.
- Is peer-to-peer lending legal in the USA? Yes, peer-to-peer lending is legal in the USA.
- What are the pros and cons of P2P lending? Pros of P2P lending include higher returns for lenders and easier access to loans for borrowers; cons include higher risk of default and less regulation.
Benefits
Peer-to-peer lending offers borrowers lower interest rates and investors higher returns compared to traditional banks.
Conclusion
Peer-to-Peer Lending offers borrowers lower rates and investors higher returns.
