What is Peer to Peer Lending

Peer to PeerPeer to peer or P 2 P meets the needs of those whose savings are being depleted by inflation (lender) and those who are denied funds by the banks (borrower). It’s a match made in heaven but conducted on the internet and has a reach that spans the globe.

Why? It’s a win-win, the investor gets a better return than banks offer and the borrower gets a cash resource for a wide variety of purposes.

Who Can Borrow

There are a growing number of online funding sites available.  You can apply for business loans, personal loans, student loans; in fact almost any reason that you need money there is a P2P online site that specializes in that type of loan or may include it in their services.

Like any other loan you will go through an application process. One of the main differences between applying for a traditional bank loan and a peer to peer loan is that you will have the opportunity to explain why you need this loan on the application.  Be honest and transparent in your explanation and you may find that one of the investors has gone through times just like yours and wants to help. Once one investor takes your cause on, there’s a good chance that others will too.

Why Get a Loan This Way

Peer to peer has advantages over traditional loans:
•    They offer loans at lower interest rates than banks with loans starting as low as 6% (at the time of writing).
•    Easier to qualify ; unlike a bank the decision is sometimes based on how compelling the borrowers reason for the loan or other social factors such as does the borrower have anything in common with the lender.
•    Wider range of loans available; if you need a smaller amount to get out of a jam a bank is not the place to go and they aren’t interested in the smaller dollar loan. The flexibility of the peer to peer lender is that you can apply for as  little or as much  as you really need

Peer to peer lending has been around online since 2005 and is growing as options are dwindling for consumers to get access to the cash they need. Like other online resources once you have been funded you can get the money deposited directly into your account.



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  • Susie Crowell says:

    I need a loan to pay off some small loans and make a house payment. If I don’t get a loan
    by tomorrow 6-3-2014 I will be behind on my payments. This is the first in a long time that I have been where I can’t meet my payments. the ideas i find here are very helpful, hopefully I can get the loan I need and get back on my feet.

    THank You


  • Brian Hill says:

    I find myself in an unusual position. My employer is in the process of moving and said that some of us may be off for 2-3 days. Well those days turned into a month and while I’m back at work, I’m badly behind. My landlord has issued a pay or quit and some smaller loans are suffering. Normal lenders have turned me down so I find myself looking for an unusual solution. peer to Peer lenders was the solution, they listened to what I had to say and gave me the loan I needed to get caught up – with plenty of time to pay it back!

  • Shawnece ford says:

    I am in a need of a loan to pay a couple of bills.due to someone taking my identity .not only did they take from me they stole from my children .I am I need of a loan for a down payment on a new car.so that I can get around and be more active in the community.

  • Linda Sutton says:

    I have always been self sufficient and don’t like asking for help but this time I needed to reach out for assistance…I think an installment loan of 3,000 would get me back on my feet. I can live with my kids for awile but I will have to get my own place eventually…I have tried payday loans but I need more than they offer. I do have study income coming in each month..I do have two outstanding loans that are paid via my checking..I would like to pay them off but the emphasis is on getting established..I am not looking for a hand out just a hand up…I am very trustworthy. I didn’t know I could get any kind of loan with my credit as low as it is, it was great to read some of the comments here from people like me who have trouble getting loans. It was a relief to know I am not the only one. Thanks for giving people like me a place on the internet that understands our needs.

  • Alan D. Cooper says:

    Need to pay off all debts so as to lower payment totals based on temporary lower earnings. If we can payoff our debts we will qualify for a lease-to-own small home.

  • karen says:

    I really need a loan for 3000 dollars to take care of my finances. i got scammed a year ago and since then have had a hard time keeping up with my bills. just about making enids meet. also, i had to take a lower paying postion due to work related injury. that’s 200 less a month. quite a loss for me.

  • Darryl Harris says:

    I would like to get a P2P loan 2500. I would like to payoff a couple of small payday loans a one installment loan. Also due to an issue with my paycheck being shorted i am approaching falling behind in my car payment by 30 days, which sucks since i have been on time since i bought the car in Oct 2013. I am staying caught up but it is a struggle.

  • Deborah Francis says:

    Recently separated after 25 years, husband did take care of financial situations until to my amazement when he left for florida to the beaches stuck me with a pile of bills which i am struggling with right now. I am employed i work ten hours a day on my feet and very hard, if i could possibly get a loan for 3,000 and pay on time it would be a miracle.

  • Carol Inman says:

    I am a 62 yr old grandmother who has let her health decline trying to pay bills. I have had to go the payday loan route until I am now at a point where I get my disability check and it is completely gone the same day. I thought a payday loan would help me in a bad situation instead it went from bad to worse. I have no family able to help and my credit gets worse because of the payday loan trap. I have put off medical procedures because of this. If I could find someone with a little heart during this holiday season to loan me $3000. I could pay off the payday loans and credit cards and still get the medical procedures done. Without help from someone with a heart I have no one left. Please I beg someone help me. You won’t be sorry.

  • Aubrey Grace says:

    I recently had some very costly vehicle repairs that I had to make. I took out some small loans, and am struggling to pay them back. I am seeking a loan of $3000 to consolidate the loans, and hopefully have a more affordable payment. I work full time, and have been with the same employer for over 6 years. Finding a P2P lender seems like it my best option. I appreciate your time for reading this, and hopefully someone might be kind enough to help me.



    I was wandering if you could tell me of some lenders do work on peer loans

  • Annette Day says:

    I am a single mom of 2 great children and I really need some help. I have been battling cancer for the last 9 months and have fallen behind on some of my bills. I took out a couple of payday loans to be able to have the money to go to my cancer treatments and the copays on insurance and meds. I would like to get a loan of $2500 to pay these loans off and be able to get the medicine and copays I need to fight this cancer and continue to work to support my loving kids. I would like to thank you in advance for listening to my story.

  • Wayne Peterson says:

    I am looking for a loan of installment in the amount of $25,000, this is too consolidate all debt that we have accrued since filing for Chapter 13 Reorganization Bankruptcty in November of 2012. We also need to do some remodeling to our home as we are both disabled and need to make it more useable, especially in the bathroom area. In addition, we need to due some much need maintenance that we never seem to get to as we both have had a couple of bad medical years, cancer, etc. We have equity in our home but due to bankruptcy we can not borrow due to bankruptcy lowering credit scores. We have scoured the internet looking for a lender and lower our scores even more. We intend on working with Lexington Law to clean up our reports, but need this loan sooner than they can correct the credit reports. We both receive social security retirement, my wife receives $880.00 per month retirement, and has a retirement of $157.00 per month from the Teamsters, she is 66 years old, I am 55 years old and a 100% Service Connected Disabled Veteran, I recieved $3,000 per month from the VA, I also receive $1,875 Social Security Disability. At age 60 I will be elgible to draw my 20 year ARMY miltary retirement. We have a mortgage payment of $606 per month a payment of $1400 to the Bankruptcy Trustee, we have approximately 6 more payments to pay and it will be discharged as paid in full. Our total expenses run us roughly $4,500 per month. We pay $600 a month in interest for a secured personal loan. We will not have this payment after June 1, 2015 it will be paid in full. We have sufficient income to make a payment of at least $600.00 per month. Any takers? Thanking you in advance for your cooperation.

    • Do some research on the internet or speak with someone in a local bank that is familiar with bankruptcies. Generally it takes several years after filing to get a lender to take a chance, even lenders that work with people that have poor credit are often reluctant to take a chance when the bankruptcy is recent.

  • quintin wallace says:

    I have worked all my life, have helped people when i can i find myself in a sitution where my bills are due and need a little help i have 12 grands 5 daughters ,2 of the grands live with my wife and i i just want tobe that man that takes care of my family i currently work part time my job cut hours any help would be appreciate as i would pay back loan

  • Richard Franklin says:

    I am an educator. I went through a divorce a couple years back after twenty five years of marriage. The effects of that coupled with doing extra for my 16 year old son, have put me in a rather tight spot. I will spare you all the “sob story” details. Lets just say that I am down on my luck. Partly the fault of others, and partly the fault of myself. I am not looking for a hand out, but a little bit of a hand up. I know that sounds really corny, but in my case it is true. I have worked hard all my life and am continuing to do so. I am fairly desperate and would appreciate some help very much. I don’t care about scores and all the other financial world garbage. If you lend to me your investment will be secure. Thank You.

  • kenneth dixon says:

    i have a short time ago went through a divorce and am a totally disabled veteran i have a Veterans compensation check that comes to my bank on the first of every month or earlier if the 1st is a holiday or falls on a weekend. I also have a social security income of $XXX.00 that come to my bank on th 3rd of the month. My total income is $XXX per month. I have old debt i am serving from the divorce of about $XXX-$XXX that i would like to get rid of. and that is what i would like to borrow. My credit is very bad from the divorce, making my Credit score is about 550. this stops me from getting a loan. I hope peer to peer lenders will take a chance on me.

  • Karen Jones says:

    I need a loan to pay for my sisters funeral expense and to get caught up on bills. I am trying to get back on my feet. My Mom lives with me now and my expenses have doubled, would a peer to peer loan be the best help for my situation?

  • Carrie Diede says:

    I am a single mom with an absentee ex. Just finished school for myself and helped my oldest child through 2 years of college for himself. Got behind on my bills during this time and incurred some medical bills. Trying to get caught up but it’s impossible. I make enough now and I could stay caught up because I got a pay increase at my job. I just need to get everything back to zero so I can make a budget without late fees

  • Nancy Johnson says:

    I am interested in a peer to peer loan. I do not have the best credit and I have to pay off some bills and make some home improvements to my house. I have tried the banks and they are not willing to work with me. I need someone to believe in me and help me out. I need to pay off my bills and build my credit back up.