Crowdlending, also known as peer-to-peer lending or P2P lending, is a way of obtaining financing through an online network of lenders. Instead of obtaining a loan from a bank or traditional financial institution, borrowers request loans through a crowdlending platform, which connects borrowers with a group of individual lenders. Lenders can be individuals or institutions looking to invest their money in loans to people or businesses.
Crowdlending is characterized by the use of digital technologies to connect borrowers and lenders, and by the ability to invest in small amounts in multiple loans. The loan process is conducted online, and borrowers and lenders can interact and make transactions through the crowdlending platform.
Best Known Crowdlending Platforms
We have done our research due to our readers’ interest in financial topics, so we present you with various platforms that connect borrowers and lenders, allowing lenders to invest in loans to borrowers. Borrowers can get loans at lower interest rates than those offered by traditional banks, while lenders can get a higher return on their investments.
The interest offered on a crowdlending platform varies depending on several factors, such as the risk of the borrower, the duration of the loan, and the amount of the loan. In general, borrowers with stronger credit histories and greater ability to pay can get lower interest rates, while borrowers with weaker credit histories will have to pay higher interest rates.
In general, an interest rate between 4% and 12% is considered a good offer in crowdlending. However, it is important to note that these interest rates are higher than those offered by traditional banks, since crowdlending carries a higher risk for the lender.
It is advisable to compare the interest rates offered by different crowdlending platforms and carefully consider the risk associated with each borrower before making an investment decision.
Some examples of crowdlending platforms are:
There are many other crowdlending platforms around the world, some of which specialize in certain types of loans or investors. Some platforms focus on personal loans, while others focus on small business loans or real estate investment projects. There are also platforms that target institutional investors or high-profile investors.
Some additional examples of crowdlending platforms are:
Rate Setter (UK)
Funding Knight (UK)
Zidisha (international crowdlending)
IOU Financial (Canada)
Society One (Australia)
Kiva (International crowdlending)
It is important to research and compare several platforms before deciding which one to invest in, each one has its own characteristics and commissions.