In a world where individuals have access to a wide array of funding solutions and models, traditional lending solutions are no longer the only option. Loan applicants can apply for loans in different ways.
Peer-to-peer lending is a process whereby an online platform is used for other consumers to provide capital which is lent to those requiring a loan. An online platform is used to connect borrowers with people who have money to lend.
Also known as social lending, Peer-to-peer lending services a sector of the financial market that may face an uphill battle when seeking finance from traditional lending institutions.
This platform links borrowers and lenders directly, bypassing banks and the associated fees. Investors decide if they want to commit fuds based on a specific rate or return.
Is peer to peer lending an option for blacklisted individuals?
There is no denying the fact that peer to peer lending is an option for blacklisted individuals. Not only does it provide a convenient platform, but it also doesn’t rely on the credit standing of applicants- unlike with traditional financial institutions.
It’s also important to note however, that not all peer-to-peer lending platforms position themselves as a place for blacklisted individuals to get a loan.
Statistics show that if you have a good credit history, peer to peer lending could provide with an alternative for cheaper credit.
This type of lending is not as secure as traditional lending and banking services. If you are approved for this type of funding you will need to make a commitment to repay the principal portion of the loan plus the cost of borrowing.
Peer to peer lending as a personal loan solution for blacklisted individuals can be ideal in terms of regarding affordability as a key factor, rather than individual credit standing.