Definition: Person to person loans are loans between individuals. You don't use a bank as an intermediary. Instead, money goes directly from the lender to the borrower, or through a person to person lending service provider.
Person to person loans are also known as:
- Peer to peer lending
- P2P lending
How Person to Person Loans Work
Loans can be formal or informal. With the Internet, you have more access to people if you use a person to person loan service.
Person to Person Loan Highlights
The main attractions to person to person loans are:
- Lower costs for borrowers
- More likely to get loan approval
- Social connections between borrower and lender
- Structure for loans between friends and family
Person to Person Loan Service Providers
If you're already familiar with how person to person loans work, you're ready to get started. We've profiled some of the major person to person loan services below:
