Planning a home improvement project? But don’t have enough funds? You can apply for a peer-to-peer (P2P) loan. It is quite different from traditional loans that financial institutions such as banks offer. When you go to a bank for a loan, there are multiple rigorous processes followed, from background checks to credit score monitoring. Moreover, you cannot apply for a small amount and for a short term. This is where P2P lending helps. P2P lending platforms offer loans for short-term to individuals and small businesses. Also known as crowdlending or social lending, P2P lending makes it easy to borrow as well as lend money. With a P2P lending platform, you can borrow money from individual investors, who lend money for a pre-decided rate of interest. Thus, the lenders or borrowers get higher interest than they would have if they have put their money in a savings account. Also, you as a borrower will get credit without the rigorous hassles of a bank, even if you have a bad credit score. It is a win-win situation for all. If you are thinking about applying for a small quick loan, here are a few well-known P2P lending platforms that can help you out. Upstart Upstart is a P2P lending company that offers loans starting from $1,000 to around $50,000. The loans are offered at an annual percentage rate (APR) of 8.85%. The APR will increase as the loan amount increases. Loans from Upstart can be used for nearly anything, right from repayments of student loans to fees for a boot camp, purchasing a new car, paying medical bills, or even to start a new business. To be eligible for a loan from Upstart, you only have to mention your education and work experience. Upstart will give its own rating based on your school of graduation, your area of study, academic performance, and work history. It goes beyond your credit scores. This is what makes Upstart popular among those in their 20s and 30s, who have not yet built a substantial credit history. Prosper Marketplace This is one of the very first P2P marketplaces. The loans offered range from $2,000 to around $40,000. These loans can be taken for 3-5 years. The APR for these loans can be anywhere between 5.99% and 36%, the latter being applicable to first-time borrowers. Loans from Prosper Marketplace are available for debt consolidation, home improvement, auto and vehicle purchases, small businesses, baby and adoption, and engagement ring financing. Additionally, you can get short-term and bridge loans, special occasion loans, military loans, and even green loans for individuals and businesses working toward lowering carbon dioxide (CO2) emissions. Lending Club Lending Club is an online marketplace which is one of the leading players in the P2P lending domains. They offer loans for everything ranging from personal finances to business loans. Whether you want to pay off your credit cards, take a consolidate debt, or undertake home improvement, you will get it from Lending Club. Moreover, loans are available for investment purposes as well. If you or anyone in your family needs a surgery or a treatment, you can apply for a patient financing loan. However, patient loans are also limited to bariatric, fertility, dentistry, and hair treatments. Personal loans offered by Lending Club range from $1,000 to $40,000. Businesses can apply for loans ranging from $15,000 to $40,000. Peerform This P2P lending platform specializes in 3-years loans. The minimum loan amount offered by Peerform is $4,000, and the maximum amount is around $25,000. The loans are offered in the APR range between 5.99% and 29.99%. The platform does not rely only on Fair, Isaac and company (FICO®) credit score to check for loan eligibility. It has its own metric known as Peerform Loan Analyzer that checks a borrower’s creditworthiness. This lets borrowers with low credit score apply for loans. You can go to Peerform for installation loans, debt consolidation, wedding loans, medical expenses, home improvement loans, car financing, and moving and relocation loans. CircleBack Lending This P2P lending platform offers loans in three categories—personal loans, payday loans, and instalment loans. You can apply for personal loans between $1,000 and $35,000. Payday loans start from $100 and can go up to $1,000. Instalment loans can range from $1,000 to $5,000. The APR offered by CircleBack Lending is based on specific parameters such as credit score, loan amount, the tenure of the loan, credit history of the borrower, and the credit usage. The APR will vary based on the state of residence of the borrower. It usually ranged between 6.63% and 36%.
