Social lending: benefits and risks
Everyone can lend money to individuals or businesses, without an official financial institution participating as an intermediary in the deal, by using online platforms that match lenders with potential borrowers. This practice is called social lending or peer to peer lending and is gaining traction and seems certain to become more popular. There are social lenders in several countries, including Italy, the Netherlands, China, and Japan, with startup operations in many other countries. Social lending offers both secured and unsecured loans. However, most of the loans in P2P lending are unsecured personal loans. Secured loans are rare for the industry… Continue reading