If at first the concept of peer to peer lending was popular mostly in the United Kingdom and the United States of America, now, the idea of using p2p lending has spread to other countries all over the World. And the reason of using it is quite obvious – it’s convenient, as the main thing you need for your online investment is the Internet. If you want to know more about investing in business loans or real estate investment loans, just take a look at p2p lending together with us.

How it works

«Straight cooperation» – that is how we can call p2p in other words. Now you don’t need any intermediaries, which are other financial institutions, like banks. Online peer to peer lending is an innovative form of loan operations, where there’s only a borrower and a lender do business.

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With peer to peer lending everyone wins. Lenders can invest their sums of money in it, so that they’ll get a bigger passive income after a while, comparing to the interest from bank investments. Borrowers prefer p2p lending too, as they get more affordable offer to borrow money.

If you want to know more about peer to peer lending or make your first financial investment, have a look at our website https://grupeer.com

Some advantages and disadvantages of using p2p for lenders

Operating costs are mostly lower, than in other ways of investment.


  • If we compare peer to peer lending with some other investment methods, we can see that it has got lower operating costs. It means that an investor gets a bigger income with his peer to peer lending investing.
  • As the interest rate is higher, the received returns are higher too. Benefits from p2p lending outperform those, which can be got from the bank deposits (from the saving account or term deposit). Now we are tend to have a really low cash rate, thus, a higher return, obtained for a shorter period of time, is more preferable and appealing.


  • If you want, for example, to become the lender, you have to be qualified. You are required to get a “sophisticated investor” qualification, which proves your vast and all-round knowledge in the investing
  • One of the weighty arguments can be the fact that your money is not secured. Generally, your country protects only that cash, which was taken in ADI’s (the Authorised deposit-taking institutions) – the banks, credit unions and so on. Unfortunately, peer to peer lending is not in that list. It shows us that there’s no guarantee for your money to be paid back if something goes the wrong way. So, if you want to invest in personal loans, for example, think twice.

Pluses and minuses of p2p lending for borrowers


  • The suggested peer to peer lending interest rates are the real benefit for borrowers. P2P perfectly suits to those, who don’t want to take a personal loan in a bank, or believe that their credit rating will help them to get a p2p loan on desirable circumstances. But be attentive and choose from different available variants.
  • In general, on peer to peer lending websites the loans don’t have additional fees or charges, which can be in banks or they may be about 1%, what is really low.
  • And one more benefit of using p2p lending is its speed. It won’t take you much time to fill in the application form and to get your cash. The only thing you need is the access to the Internet. Thus, the process is quite fast and effective.


Two main p2p lending minuses for borrowers are:

  • P2P lending may not give you a loan if it is a large amount of money (the exception is – the business loan). The majority of peer to peer lending sites provide giving the loans up to 35 thousand of dollars. But some may give you a bigger sum of money.
  • For some purposes, you’ll need to go to other financial institutions, as p2p lending is limited with personal loans.

If everything is made competently, p2p lending Europe may become that right thing you were looking for. If you are an investor, the capital investment in p2p lending is a good idea.  Of course, it is only developing now, but the last choice is yours. Good luck!


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