P2P lending, also known as peer-to-peer lending, is an online channel that bridges the gap between potential borrowers and lenders. It amplifies credit availability and gets rid of unnecessary paperwork or steps, ensuring prompt and hassle-free credit for borrowers. What makes the P2P platform stand out is the availability of numerous certified lenders. This enables time-saving for credit-seekers who need funds urgently and promptly.
The P2P platform is disruptive since it mitigates the requirement of approaching traditional banks, which typically takes weeks or even months to process the credit request owing to rigorous vetting procedures. Although P2P lending is more or less seamless and transparent, it still needs to fill some gaps like preventing lenders from fraudulent borrowers.
Some frontline benefits of P2P lending include faster processing time, access to a variety of lenders, a straightforward application process, and in-depth risk assessments.