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Peer to Peer Lending & P2P Loans
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Peer to Peer Lending (P2P Lending) is a new way to borrow money online directly from other people,
and for people who want to lend money to make loans directly to other people who need to borrow some. Since there are no banks involved, borrowers have the chance to receive interest rates that are more favorable than they might otherwise get from their traditional lending institution or credit card company - and lenders can potentially make more than they normally would by keeping their funds in a traditional investment, by receiving higher rates of interest, directly from the borrowers they choose themselves. It’s almost like being your own bank or credit card company - except without any of the hassle! |
Peer to Peer Lending & Peer to Peer Loans Comparison Chart:
| P2P Lending Market Platforms: | Prosper | | Lending Club | | Fynanz | |
| Peer to Peer (P2P) Loan Types: | |||
| Personal Loans | • | • | |
| Business Loans | • | ||
| Student Loans (Education Expenses Only) | • | ||
| Peer to Peer (P2P) Loan Amounts: | |||
| Personal Loan Maximums | $25,000 | $25,000 | n/a |
| Business Loan Maximums | $25,000 | n/a | n/a |
| Student Loan Maximums | n/a | n/a | $40,000/yr |
| Peer to Peer (P2P) Loan Rates & Terms: | |||
| Borrower Interest Rates | 7.70 - 36.00% | 7.12 - 17.86% | variable |
| Borrower Loan Term | 3 Years | 3 Years | 5/7/10 Years |
| Co-Signed Loans | No | No | Yes |
| Guaranteed Loans | No | No | Yes |
| Peer to Peer (P2P) Loan Fees: | |||
| Origination Fee (Added to Loan Amount) | 1.00 - 3.00% | 0.75 - 2.00% | 2.90% - 6.90% |
| Failed Payment Fees | $15 | $15 | ? |
| Late Payment Fees | $15 or 5% of payment due | $15 or 5% of payment due | ? |
| Early Payment Penalties | None | None | None |
| Guarantee Fees | n/a | n/a | 1.00% in deferment or while <10% paid |
| P2P Credit Qualifications: | |||
| Minimum Credit Score | 520 | 640 | None |
| Maximum Debt-to-Income Ratio | None | 30% | None |
| Peer to Peer (P2P) Lending Fees: | |||
| Payment Servicing Fee (Charged to P2P Lenders Only, Not Borrowers) | 1.00% of payment | 1.00% of payment | 1.00% of principal/yr |
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| Select a Peer to Peer Lending & Peer to Peer Loan provider here: |
Join Prosper $25 Bonus! | |
Join LendingClub Low Rates! | |
Join Fynanz $25 Bonus! | |
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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 4/15/08. Rates & fees are variable, in some instances, and are not APR calculations. Please consult your Peer to Peer Loan provider for details & further information.
