Peer-to-Peer Lending Platforms

Peer-to-peer (P2P) lending platforms connect borrowers directly with individual investors, bypassing traditional banks. Borrowers can apply for loans online, where their requests are evaluated. Investors can browse these requests and choose to fund them, earning interest over time. This model allows for potentially lower interest rates for borrowers and higher returns for investors compared to traditional savings accounts. P2P lending democratizes access to credit and investment opportunities, enabling people to participate in the lending process while managing risk through diversification. However, it also carries risks, as borrowers may default on their loans.