Peer-to-peer (P2P) lending is a type of online lending platform that connects borrowers with individual lenders or groups of investors who are willing to lend money for a specific interest rate.
P2P lending offers an alternative to traditional banks by allowing borrowers to obtain loans directly from investors without the need for a financial institution as an intermediary.
The platform usually charges a fee for its services and manages the loan repayment process.
P2P lending has gained popularity in recent years due to its potential to offer higher returns for investors and lower interest rates for borrowers.
However, it also carries some risks such as default rates and lack of government insurance.
It is important for both borrowers and lenders to thoroughly research the platform and the parties involved before entering into a P2P lending agreement.