P2P piggy bank savings

Published on October 2nd, 2018 | by Jenny


Why Do Borrowers Like P2P Lending More than Banks?

P2P (peer-to-peer) lending is something that more and more people are discovering the advantages of. You’ll find plenty of people discussing the benefits of investing via a P2P platform, but what if you want to borrow money instead of investing it?

Here are just a few reasons you should use a P2P site instead of a bank when that’s the case.

Great Interest Rates

Banks can really kill you with their interest rates. You might think that’s all greed, but it’s really down to the insanely high overheads associated with office space and a large manpower force. All that means you can expect to pay around 3% more interest when you borrow. Social lending avoids most of the overheads faced by banks, which means you should be able to get much lower interest rates on any loans you take out.

No Charges for Early Payment

One of the most annoying things about taking a loan from a bank is facing early repayment fees. A lot of people end up in a position to get rid of their debt earlier than they thought, but they find that doing so will mean having to pay more than they originally would have. Even if you can afford it, you shouldn’t have to afford it. Go with a P2P lending platform instead – very few demand early repayment fees.

Fast and Convenient Online Process

Sometimes you can wait to hear back about a loan, but not always. When you want the money that you’re borrowing to arrive in your account as fast as possible, it’s wise to go with P2P lending platforms. Everything is done online to keep the process as swift and hassle-free as possible. Everything is quick, transparent, and seamless. You don’t even need to leave your home.

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