Peer to Peer Lending & P2P Loans

Peer to Peer Lending & P2P Loans

Peer to Peer Lending (P2P Lending) is a new way to lend and borrow money online with others.

Think “I got a loan, online” (for borrowers) and “I just became a banker” (for lenders) – and…. you begin to see.
Where do these models eventually lead? Towards an online “digital financial network” – managed by you and me.

  • Borrowers receive bank-competitive interest rates and lenders can yield bank-like returns on invested funds.
  • Thousands of individuals lend as little as $25 per borrower. You don’t have to “know” anyone to receive a loan.
  • Privacy, security, and legal compliance are built in. More than $1 billion in P2P personal loans have been made.
  • P2P Loans are a new portfolio asset class. Diversify by investing into large pools of FICO pre-qualified borrowers.
  • P2P allows Social Lending: You may opt to transact with friends and family to foster a generational wealth effect.
New Borrowers: Check your loan rate with a single click just by joining as a member. Your credit score is not hurt!

New Investors: You can now open a self-directed IRA and get favorable tax treatment! Details after initial signup.

Peer to Peer Lending & Peer to Peer Loans Comparison Chart:

P2P Lending Sites:
Peer to Peer (P2P) Loan Types:    
Personal Loans $1,000 to $35,000 $2,000 to $35,000
Debt Consolidation Loans Up to $35,000 Up to $35,000
Credit Card Consolidation Loans Up to $35,000 Up to $35,000
Interest Rates & Terms for P2P Loans:
Loan Interest Rates (Fixed Rates) 6.78% to 29.99% ¹ 6.73% to 35.36%
Available Loan Terms (Fixed Terms) 3 or 5 Years ¹ 3 or 5 Years
Penalties for Early Repayment of Loan (Charged to Investors, via Servicing Fee) None
Loan Origination Fee (Deducted from Loan Amount) 1.11% to 5.00% 1.95% to 4.95%
P2P Borrower Eligibility Requirements:    
Minimum Credit Score to Get a Loan 660 (TransUnion) 640 (Experian)
States Where P2P Loans Are Available to Borrowers 43 States (Except: IA, ID, ME, MS, ND, NE, VT) 47 States (Except: IA, ME, ND)
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Select a Peer to Peer Lending & Peer to Peer Loan Provider:
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Peer to Peer Lending Marketplace Information for Investors:

Peer to Peer Market Platform Statistics:
Total Dollar Volume of Loans Funded per Market $6.2 Billion $2.4 billion
Total Number of Loans Funded to Date per Market 477,000 219,000
Average Dollar Amount per Loan (2014) $12,500 $12,980
Types of Loans Available for Investment:
Personal Loans Yes Yes
Debt Consolidation Loans Yes Yes
Credit Card Consolidation Loans Yes Yes
Peer to Peer (P2P) Loan Investment Fees:
Loan Payment Servicing Fee (Charged to Investors) 1% of Every Payment (Including Interest) 1% of Outstanding Principal Balance Only (Annually)
P2P Investing Eligibility Requirements & Account Types
States Where P2P Lending Is Approved (Per Platform) CA, CO, CT, DE, FL, GA, HI, ID, IL, KY, LA, MN, MO, MS, MT, NH, NV, NY, RI, SD, UT, VA, WA, WI, WV, WY AK, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, LA, ME, MI, MN, MO, MS, MT, NH, NV, NY, OR, RI, SC, SD, UT, VA, WA, WI, WV, WY
Secondary Trading Market for P2P Investments:
P2P Loan Trading on FolioFN Transaction Platform Yes Yes
Transaction Fee (Per Note) for Trading via FolioFN 1.00% of Sale Price 1.00% of Sale Price
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Peer to Peer Lending & Peer to Peer Loans:
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The information contained in this chart comes from the websites of the P2P Lending providers listed and is current as of 1/1/13. Rates & fees are variable and are not APR calculations. Please consult your Peer to Peer Loan provider for further information. * Cumulative return percentages in this chart are pulled from statistics and public data provided by both markets allowing the performance of a methodologically transparent return calculation. Cumulative return percentages listed are not an implicit or explicit guarantee of investor performance. explicitly does have a financial relationship with both Prosper and LendingClub and may receive revenue when visitors to this site complete certain actions, such as opening an account. derives zero revenue from the purchase or sale of loans and/or notes which may be offered by prospectus through either the Prosper or LendingClub platforms and has no equity interest in and owns no stock issued by either entity.

P2P Lending ™