P2P lending

Peer-to-peer (P2P) lending is a method of borrowing and lending money directly between individuals through online platforms, bypassing traditional banks. Investors lend their funds to borrowers who need loans, and in return, they earn interest. The platform facilitates the process, assesses risks, and manages payments. P2P lending can offer lower rates for borrowers and attractive returns for investors, but it also carries risks like borrower default. It’s an alternative financing option that connects those seeking funds with those willing to invest, often enabling more flexible and accessible lending compared to conventional banking.