Peer-to-peer lending, also called P2P lending, is the practice of loaning money to people or companies through online platforms that match lenders with creditors. The creditor's investment in the loan isn't normally shielded by any government assurance.

Peer-to-peer financing is a kind of crowd-funding utilized to Raise loans for those that have to borrow, from individuals who wish to make investments. People nowadays prefer using peer 2 peer lending services over other options like banks, due to lower nuisances involved.

There are many advantages of P2P lending. It empowers individuals to borrow and lend money with no financial institution as an intermediary. It also extends credit to borrowers that are not able to receive it through conventional financial institutions.

The main reason why people have started choosing this financing option is that the investors get greater interest by lending out their money rather than saving it in lockers. If we talk in terms of debtors, they get funds at comparatively low rates of interest.

The process of P2P lending is generally carried on using the internet or online platform where the borrowers and lenders enroll themselves. A thorough investigation is carried on before enabling the parties to take part in any borrowing or lending activity. This makes the option very secure as well.