Peer to peer short term loan is one of the best short term loan options if you are facing difficulties in getting approved for a loan at the bank. Peer to peer loan has individual investors who supply the money for lending to other consumers and small businesses. Investors can choose how much to fund the loan and which loans they want to fund. The following are the 4 best peer-to-peer lending companies.
1. Peerform
Peerform offers loans of $4,000 – $25,000 for borrowers with low credit scores. The best interest rate it offers is 5.99% for people with a good credit score. It charges a 1%- 6% origination fee in the initial approval of the loan. If you are late in payment, they can charge you a 5% late fee. Peerform loans are available in a 3 years term. There is no penalty fee if you pay off your loan early. The advantage of the Peerform loan is that it does not have any outrageous rate that is higher than 30%. It does not allow cosigner and joint application. Peerform loan is not available in several states including Connecticut, Vermont, and Wyoming.
2. Upstart
Upstart offers a loan amount from $1,000 – $50,000 specifically for students. Upstart does not base its loan approval on the credit score. Instead, they can look at other areas such as who is your employer, and what you major in your college studies. If you fulfill the criteria with flying colors, you can enjoy the lowest APR and don’t have to pay the origination fee. The origination fee can be as high as 8% for some borrowers. The typical APR range is from 6.95% – 35.99% and the loan term is from 3 – 5 years. It also does not accept cosigners. The funds can be deposited in your account within 1 business day if you accept the loan offer after 5 p.m. EST. Upstart loans are not available to the residents in Iowa and West Virginia.
3. Payoff
Payoff offers loans starting from $5,000 – $40,000 which makes it suitable for debt consolidation. Payoff loans have repayment terms from 2 – 5 years. The 5%origination fee is the only fee that they charge. It takes around 3 – 6 days for the fund to be deposited into your account after the loan is approved. If you apply for a loan for debt consolidation, the staff will take 7 – 30 days to deposit the fund into the accounts of your creditors. It offers financial education tools to educate the users on how to manage their finances. It is also transparent in the qualification process.
4. Prosper
Prosper is the leading p2p platform that offers loans from $2,000 to $40,000. Joint application with another borrower is allowed. Loans that are applied on Prosper get charged with an APR from 7.95% – 35.99%. Prosper charges an origination fee from 2.4% – 5%. It requires a minimum of three open tradelines to get approved. The funds will be in your account within 3 days after approval. In order for your application to get approved, you need to make sure that your loan request is at least 70% funded. Prosper uses a risk rating system to assess the risk of the borrowers. The risk rating system calculates the points based on the borrower’s credit history and debt to income ratio.
