TOP 10 best P2P lending sites
Best P2P lending app - Lenme
TOP P2P lending apps:
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1
Lenme - No min credit score. Loans $50-$5000.
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2
SoFi - Student-loans focused. Min credit score 680. Loans $500-$100k.
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3
Prosper - Fair credit, min credit score 560. Loans $2k-$50k.
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4
Upstart - AI-driven assessment. Loans $1k-$50k.
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5
LendingClub - Min credit 600. Loans $1k-$40k.
Peer-to-peer lending apps are your best bet if you find yourself in a situation that needs immediate attention but requires cash. This is a faster way to get personal loans to pay off debt, finance a large purchase, or take care of unexpected medical expenses. They make it straightforward for borrowers looking for loans with favorable terms, especially those with less-than-ideal credit histories.
Borrowers have access to loans from lenders for as much as $50,000 (or more), with a predetermined repayment period and reasonable interest rates. Each borrower's chances of being approved for a loan increase because P2P lenders work with numerous investors. There is always an investor ready to lend certain amounts of money to businesses or individuals in need of financial empowerment.
Read on to learn more about peer-to-peer lending sites.
Start investing in successful Forex trader with RoboForex CopyFx platformWhat is a peer to peer lending service?
Peer-to-peer (P2P) lending apps and services link borrowers and lenders. When you sign up for peer-to-peer lending sites, you can do so as either a lender or a borrower. It acts as the interface where potential borrowers can find lenders who will consider their credit score and other factors to lend them money.
A borrower must review the terms of service and policy of the lender, which may differ between lenders. This will educate you on the amount you must repay each month because they have fixed terms and interest rates.
P2P site lending has become more popular recently because the underwriting standards are frequently less strict than those of traditional banks.
However, peer-to-peer loans may have more fees and higher interest rates than conventional loans, so carefully review the lender's terms. Before taking loans, weigh the benefits and drawbacks.
👍 Pros
•Peer-to-peer lending companies may be a good choice for borrowers who need money urgently but don't qualify for traditional loans.
•It is a more accessible source of funding than loans from financial institutions like banks, and it is simpler to qualify with bad credit or no credit history.
•Fund projects are faster due to the streamlining of the application and underwriting processes.
•Peer-to-peer lending typically offers investors higher returns than other investment types.
👎 Cons
•It necessitates a hard credit inquiry, which could lower the borrower's credit score.
•The government does not offer lenders insurance or any other kind of protection if a borrower defaults.
Best peer to peer lending companies comparison
Comparing different peer-to-peer lending sites is one of the important endeavors every potential borrower should do before contacting any of them. You don't want to borrow money from a P2P platform whose terms and conditions are unfit for your financial situation.
| Minimum-maximum loan amount | Term Length | Credit Score Requirement | Estimated APR | |
|---|---|---|---|---|
Lenme |
$50 - $5000 |
12 months |
- |
3% |
SoFi |
$500 - $100,000 |
84 months |
680 |
5.99% - 18.64% |
Prosper |
$2000 - $50,000 |
3 years |
560 |
6.99% - 35.99% |
Upstart |
$1000 - $50,000 |
5 years |
- |
6.50 - 35.99% |
LendingClub |
$1000 - $40,000 |
36 - 60 months |
600+ |
8.30% - 36% |
Peerform |
$4000 - $25000 |
3 - 5 years |
600 |
5.99% - 29.99% |
SoLo Fund |
$50 - $1000 |
15 Days |
- |
- |
Funding Circle |
$25,000 - $500,000 |
6 months to 7 years |
660 |
5.99% - 16% |
MyConstant |
$50 - $50,000 |
180 Days |
No Credit Check |
6.00% - 7.00% |
Kiva |
$15,000 |
36 months |
- |
0% |
10 best peer to peer lending apps
1. Lenme
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Lenme
Best For: Overall
APR: 3%
Minimum amount: $50
Maximum amount: $5000
Minimum credit score: Regardless of your credit score, anyone can apply for a loan
Loan Terms: 12-month repayment period and a minimum of 3 months paid in installments
Lenme is a top peer-to-peer lending app that helps borrowers find investors for small loans. Because of how the Lenme peer-to-peer lending service was designed, borrowers only need to meet a few basic requirements. The borrower may have to present proof of the following:
Social Security number
Active bank account
Government-issued ID
Those borrowers who meet the requirements for these loans will receive the loans in their bank account within 1-2 business days.
2. SoFi
SoFi
Best For: Overall
APR: 5.99% to 18.64%
Minimum amount: $500
Maximum amount: $100,000
Minimum credit score: 680
Loan Terms: 24, 36, 48, 60, 72 or 84 months
The peer-to-peer lending app SoFi (Social Finance) offers different types of loans, but it focuses on refinancing student loans. They are well-known for offering no-fee loans, which is why they are among the best P2P lenders for student loans. SoFi is also a top P2P site where you can request auto and student loan refinancing, home loans, and small-business financing.
The SoFi app allows investors to manage all of their investments, including stocks, exchange-traded funds (ETFs), and cryptocurrency, in a single location.
SoFi offers same-day funding approval, but it can also take up to a week to receive funds.
3. Prosper
Prosper
Best For: Risk management
APR: 6.99% to 35.99%
Minimum amount: $2,000
Maximum amount: $50,000
Minimum credit score: 560
Loan Terms: 3 years
Since 2005, Prosper, a peer-to-peer lending service, has facilitated different loans, from debt consolidation to medical expenses. It accepts applicants with fair credit and provides a variety of loan amounts. Two borrowers can submit a joint application through Prosper's platform. Having a co-borrower with better credit can increase your chances of receiving a loan or one with a more favorable annual percentage rate.
If approved, borrowers will receive the loans in their bank account in 1-3 business days.
4. Upstart
Upstart
Best For: Overall
APR: 6.50 - 35.99%
Minimum amount: $1000
Maximum amount: $50,000
Minimum credit score: Null
Loan Terms: 3 to 5 years
The Upstart peer-to-peer lending app is a well-known platform because of its novel method of borrower assessment. Upstart's services are transparent and faultless, thanks to the AI-driven algorithm it uses to evaluate applications.
To reduce the risk of borrowers defaulting on their loans, Upstart enables you to diversify your loans across various risk profiles.
If a borrower is approved for these loans, they will receive the requested amount in their bank account within one business day.
5. LendingClub
LendingClub
Best For: Individual Loans
Interest rate: 8.30% to 36%
Minimum amount: $1000
Maximum amount: $40, 000
Minimum credit score: 600+
Loan Terms: 36 to 60 months
One of the most well-known peer-to-peer lending services in the US is LendingClub. They are also the first bank to connect investors and borrowers. LendingClub is the best option for borrowers with fair credit who might otherwise have few borrowing options.
After a hard credit inquiry by LendingClub, the borrower receives the loan funds in their bank account within five business days.
Top 6 Apps to Send Money Anonymously6. Peerform
Peerform
Best For: Low and Fair Credit Borrowers
Interest rate: 5.99% to 29.99%
Minimum amount: $4000
Maximum amount: $25,000
Minimum credit score: 600
Loan Terms: 3 to 5 years
PeerForm, a leading peer-to-peer lending app, matches potential borrowers with investors following a quick screening and soft credit inquiry. Peerform has potentially high fees and interest rates, but it can be useful for borrowers who have had difficulty getting loans from other lenders.
PeerForm stands out because lenders can be difficult to find for borrowers with scores in that range. Peerform is a choice for borrowers with fair credit who want to borrow $25,000 or less and have a minimum credit score of 600.
A PeerForm loan might not be the best choice in an emergency because it could take a week or more before you get the loan.
7. SoLo Fund
SoLo Fund
Best For: Emergency loans
APR: -
Minimum amount: $50
Maximum amount: $1000
Minimum Credit Score: Null
Loan Terms: 15 days
Paycheck-to-paycheck borrowers in need of an emergency loan can use the SoLo fund peer-to-peer website as a less expensive option to payday loans. It's better to reserve it for circumstances where you can repay the loan quickly, such as when paying an electric bill to avoid paying expensive fees to get service restored.
There is no option to extend the terms of this peer-to-peer lending app, which only lasts 15 days. In any other case, SoLo Funds imposes a late fee of 15% of the loan amount plus $5.
If approved, borrowers will receive the requested amount in their bank account within a day.
8. Funding Circle
Funding Circle
Best For: Business with Strong Credit Score
APR: 5.99 to 16%
Minimum amount: $25,000
Maximum amount: $500,000
Minimum Credit Score: 660 for business loans and 680 for SBA loans
Loan Terms: 6 months to 7 years
Funding Circle is among the top-rated online peer-to-peer lending sites that connect businesses to lenders. For small businesses, it provides a variety of financing options, including term loans, SBA 7(a) loans, and business lines of credit.
Try this peer-to-peer lending app if you are a business owner with good credit and looking for a quick alternative to a bank loan with longer repayment terms.
Lending decisions can be made in as little as 24 hours, and funding may be available in as little as three business days.
9. MyConstant
MyConstant
Best For: Overall
APR: 6.00% - 7.00%
Minimum amount: $50
Maximum amount: $50,000
Minimum Credit Score: No Credit Checks
Loan Terms: 180 Days
MyConstant is your best option if you're looking for cryptocurrency peer-to-peer lending companies in the financial market. Borrowers can borrow money at comparatively low-interest rates using their cryptocurrency holdings as collateral on this top P2P site. To be approved for a loan, borrowers must put up collateral equal to 150% of the loan's value in cryptocurrency.
Interestingly, MyConstant offers a higher ROI than other marketplaces or financial institutions. Due to the variety of investment options available, it is a fantastic option for all investors, regardless of their level of experience.
Following application submission, loan decisions may be made in as little as 24 hours, and funding takes between 1–3 business days.
10. Kiva
Kiva
Best For: Entrepreneurs
APR: 0%
Minimum amount: -
Maximum amount: $15,000
Minimum Credit Score: Null
Loan Terms: 6 to 36 months
Kiva's p2p site offers one type of financing: microloans. Even for microloans, its maximum loan amount of $15,000 is on the low side. Therefore, it is best for people who require a small amount of working capital to renovate certain areas of their business, increase their inventory, or pay to integrate a technology solution.
Kiva is a company that offers small-business loans with no credit checks and no interest.
What is P2P on crypto and should I try It?How to choose the best p2p site?
Before choosing a peer-to-peer lending company from which to borrow money, you should consider some fundamental principles. Here are some of the things you must consider.
Type of Loan: Many peer-to-peer lending companies offer different loan types better, so ensure that you are contacting the right p2p site for your type of loan.
Approval Speed: Peer-to-peer lending apps that offer loans in more than 48 hours may not be the best option if you need a loan for an urgent need. Thus, you must consider how long it takes for each loan to be approved by these peer-to-peer lending companies.
Required credit rating: Since peer-to-peer lending companies have varying credit ratings, it is best to check the credit rating of each P2P site. It's crucial for people with bad credit to use the prequalification process offered by each lender when it's available.
Interest rate: Making a better choice of P2P sites that fit your financial capacity will be facilitated by being aware of the interest rates charged by peer-to-peer lending apps. Peer-to-peer loans typically have interest rates that range from 6% to 36%, just like personal loans. Compare lenders to identify the choice with the lowest overall borrowing cost.
Consider the repayment terms. To determine whether you can afford the loan, you may also want to find out how long it will take you to pay it back. Repayment terms for personal loans typically range from one to seven years.
Read reviews and ask family and friends for referrals: Read customer reviews to learn more about the customer service options, the application procedure, and other aspects of the borrowing experience offered by each lender. Ask your friends and family for recommendations if they have ever worked with P2P lenders.
Prepayment Penalties: Some lenders may charge prepayment fees if you repay your loan earlier than agreed upon in the loan agreement. When comparing lenders, look for a prepayment penalty.
Collateral: For those with poor credit scores, some personal loan providers offer secured loans. You pledge tangible assets, like a car, as collateral for the loan. If you have collateral, your chances of getting a loan approved with a lower interest rate increase.
How does peer to peer lending companies work?
In contrast to traditional banks, peer-to-peer lending companies have a different application process. Individuals borrow money from other people directly, bypassing the middleman financial institution, and all transactions happen online.
Let's examine the various stages of using a peer-to-peer lending app to apply for a loan.
Prequalification is the first stage after finding a p2p site. In this phase, you determine through the website's prequalification procedure whether you are qualified for a peer-to-peer loan. You will discuss the conditions of your potential loan and your potential annual percentage rate (APR), which consists of your interest rate plus any fees if you apply.
The next step is to apply to the lender's website if you are eligible and the terms are favorable. Remember that the lender will run a hard credit check.
A lender typically approves your application within 24 hours of you completing the application process.
Many investors will examine your loan if it is accepted. They'll either pay a percentage of your requested amount or the full amount, depending on how much you want to borrow.
You will get the loan through electronic transfer, and depending on the lender, it might take up to one business day for it to show up in your account.
Make sure to adhere to the set repayment schedules on your loan's repayment terms.
What are borrower risks?
When determining the creditworthiness of a customer, always check their business profile on Companies House and examine any financial statements. It’s important to compare the previous three years of financial statements to identify how their performance is currently faring "Borrower risk" refers to a borrower's inability to make loan repayments or uphold the agreements made prior to loan approval. Even though it's impossible to predict who exactly will miss payments, properly evaluating and managing credit risk can lessen the impact of a loss.
Lenders consider the five Cs—credit history, ability to repay, capital, the terms of the loan, and any associated collateral—when determining the credit risk of a consumer loan.
Cheapest way to transfer money internationallyHow can I make money with peer to peer lending sites?
Lending money to people through peer-to-peer lending apps can be a way to invest your money. The objective for each investment is to produce extra income in addition to the capital put up.
To become an investor, you must comprehend the various investment strategies and how the market operates. For instance, if you're interested in investing in a loan company, research P2P sites to see which ones align with your investment tenets.
You will need to register for an online account with a peer-to-peer lender if you want to review different loan options and conditions. Through your account, you can keep tabs on loan repayment as well.
When you use P2P sites to lend money to people, you will get it back in the form of EMIs, or equated monthly investments. These comprise the principal as well as the interest earnings.
Some platforms offer assistance when choosing individual loans, while others will distribute your funds automatically. The P2P lending platform collects EMI payments from borrowers on behalf of the lenders. They deposit them into the lenders' escrow accounts, where the lenders can choose to withdraw funds or reinvest them.
P2P lending involves risks, just like any other investment, and you can exercise as much or as little control over the procedure as you like.
Summary
Peer-to-peer lending apps are practical tools that can provide investors with financial support, whether they are lenders or borrowers. Some people take out loans to cover other financial obligations or to invest in a different portfolio. P2P sites help the parties involved find financial support for their organizations or as individuals.
FAQ
What is the best peer-to-peer lending app?
The best P2P websites and programs complement your objectives and strategy. Researching the various P2P companies will reveal the best, but top P2P sites include Lenme, Prosper, and Upstart.
Is peer-to-peer lending legal?
Yes, it is legal. However, if a borrower defaults, the regulators may not be able to help.
How profitable is peer-to-peer lending?
In an environment with low-interest rates, peer-to-peer lending can offer greater returns than many savings accounts or conventional investing accounts.
Is P2P lending high risk?
Yes, and this is because loans issued to individuals may carry the risk of default. Because unsecured loans predominate, no collateral may be taken in the event of default.
One of the biggest dangers of peer-to-peer lending is borrowers defaulting, but fortunately, trustworthy companies are prepared for this possibility.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.