Peer-to-peer (P2P) lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the brick-and-mortar general lending scenarios. P2C lending is also known as social lending or crowdlending. BREAKING DOWN 'Peer-To-Peer Lending (P2P)' Traditionally, individuals with small businesses who want a loan usually apply for one through the bank. The bank would run extensive financial checks on the applicant's credit history to determine if the entity would qualify for a loan and if yes, determines the interest rate that will be charged on the loan. Individuals that want to avoid paying high interest rates or that would otherwise be rejected for a loan due to poor credit history, may opt for an alternative way of borrowing funds - peer-to-peer lending. With peer-to-peer lending, borrowers take loans to online m88 gamers who are willing to lend their own money for an agreed interest rate. The profile of a borrower is usually displayed on a peer-to-peer online platform where investors can assess these profiles to determine whether they would want to risk lending money to a borrower. A borrower might receive the full loan amount only or part of what he asked for from an investor. In the case of the latter, the remainder of the loan may be funded by one or more investors in the peer lending marketplace. In peer-to-peer lending, there may be multiple sources and monthly repayments to be made to each of the individual sources. M88 platforms connect borrowers to investors with attractive interest rates. For lenders, the lenders generate income in the form of interest which can often exceed the interest that can be earned through savings vehicles, such as saving accounts and CDs. In addition, an investor is able to earn a higher return on his investment than he can get from the stock market through the interest has transfer funds m88 payments he receives monthly from the borrower. On the other hand, P2P loans give borrowers access to financing that they may not have gotten approval for from financial intermediaries. Furthermore, the borrower gets a more favorable interest rate on her loan than she would otherwise have gotten from a bank.