Peer to Peer lending is when individuals with money to invest are matched with individuals who need money to create a loan.
Lending Hub has developed an online platform and marketplace for P2P loans which leverages the sophistication of online technology to allow lenders to bid on borrower loan listings using a 'reverse auction' technique.
The 'reverse auction' technique creates bidding tension between lenders by forcing them to bid the lowest interest rate at which they are prepared to lend funds to the borrowers. This method ensures that borrowers get the lowest possible rate on their loan.
Other Names for Peer to Peer Lending
Peer to Peer lending is also known as Social Lending P2P loans, Peer to Peer lending, Person to Person lending, micro lending or Community Borrowing.
Why Personal Loans
Personal loans are ideal for P2P lending as they simple and can be used for almost any purpose by the Borrower.