Reply To: Hi all, I’m interested in understanding the potential risks associated with peer-to-peer lending. Does anyone have insights or personal experiences they could share on this topic?

[Isabella Fortuna]

Peer-to-peer (P2P) lending is an innovative financing method that has gained popularity recently. It connects borrowers directly with individual or institutional lenders, circumventing conventional banking channels.

There are inherent risks associated with this type of lending, making it crucial to grasp the fundamentals before participating. Here are some key points to consider:

For borrowers, P2P lending offers an alternative source of financing, particularly for those who may not be eligible for traditional bank loans. While the interest rates might be higher compared to bank loans, they generally remain lower than those associated with credit cards.