blog

4 Best Peer to Peer Lending Companies

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.

Vinay Kumar

Student. Coffee ninja. Devoted web advocate. Subtly charming writer. Travel fan. Hardcore bacon lover

Recent Posts

Bright Ideas: Enhancing Living Room Comfort with the Right Light and Waterproofing

The living room is still considered the heart of any home: the place where you…

2 months ago

5 Myths About Silver Jewellery Debunked

Silver jewellery has been cherished for centuries, admired for its beauty, versatility, and affordability. However,…

3 months ago

Telcovas Ensemble OSS Services: A Comprehensive Overview

Telcovas Ensemble, a powerful Operations Support System (OSS) platform, offers a comprehensive suite of services…

4 months ago

How a Probate Attorney Can Simplify the Estate Settlement Process

The estate settlement process can often feel like navigating a complex labyrinth of legal requirements…

5 months ago

Deep Freezers: Not Just for Shops, But Powerhouse Storage for Homes Too

The image of a deep freezer conjures visions of sprawling supermarkets and bulk food storage.…

5 months ago

What are the Types of Law and Specializations?

Understanding different types of laws is important because it helps individuals navigate legal issues effectively…

5 months ago

This website uses cookies.