How it works

How it works

The following steps describe the overall P2P lending process:

  • A potential borrower interested in getting a loan completes an online application on a peer-to-peer lending platform.
  • This platform evaluates the application and determines the applicant’s risk and credit rating. It is then awarded to the applicant at a reasonable interest rate.
  • Once the application is approved, the applicant receives the available options from the investors based on their credit rating and set interest rates.
  • The applicant can evaluate the proposed options and choose one of them.
  • The applicant pays periodic interest (usually monthly) and repays the principal amount at maturity.