There are several online marketplaces that offer P2P loans. Once a borrower has identified the type of P2P loan they want to apply for, they’ll need to choose a lending site. Then, once their application is approved, they’ll need to review the loan terms and interest rate that they’re offered.
If the borrower is content with the terms, they can submit their loan listing to the platform and wait for investors to fund it. This is usually when a hard credit check will happen. Once the P2P loan is funded, the funds will be deposited into the borrower’s bank account, and they’ll need to keep up with the agreed-upon scheduled payments.
Popular P2P Lenders
The P2P lending industry has become increasingly popular. In 2022, the size of the P2P lending industry in the U.S. is nearly $938.6 million, according to data from IBISWorld. The list of P2P lending platforms is continually growing, but these 6 lenders currently represent some of the biggest names in the business:
- Upstart
- Prosper
- Peerform
- SoFi
- LendingClub
- Funding Circle (business lending)
Although these are popular sites, always be sure to research any lender on your radar, and look at reviews from reputable sources before applying for a loan. To borrow, you’re required to provide sensitive and personal information, so you’ll want to make sure you’re in good hands.
