Social lending has become a popular platform to satisfy loan needs. Where banks have failed – social lending hubs have successfully launched their lending services and become an effective community borrowing networks.
One major reason is that the banks charge hefty interest rates on loans plus service charges, whilst online loans taken from a social lender tend to have a lower interest rate. If you too are looking for a place where you can get P2P lending, you may search for Crowdfunding-platforms online.
According to recent studies, it can be seen that the banks continue to try to push up the cost. This situation is not new to the United Kingdom where bank loans have become an expensive option. People here continue to look for alternatives, namely in the form of cheaper banking solutions.
The Social Lending Wave
Social lending wave followed by Prosper in the US. Both social lending hubs are increasingly becoming popular because of their ability to offer loan terms that easy against the banks, whose popularity has somewhat diminished.
These social lending hubs have been developed with only one purpose: to make loans available to anyone without the all the unnecessary hassles of the bank or an intermediary in between. At the same time, it is an alternative investment vehicle.
Both lenders and borrowers belong to the community. For lenders, it is an excellent investment opportunity where they can grow their money by lending it to others at a lower interest rate than normally charged by banks.